Last week we passed a stock market milestone.  We reached the level prior to the bankruptcy of Lehman Brothers in the fall of 2008 and the entire subsequent meltdown.

The crash was set up by a generation of people, most of whom have not saved enough to enjoy a retirement close to their normal lifestyle.  So rather than save more or cut back they came to the gaming table one more time and this time threw snake eyes.  Tech stocks had blown up in the 90s.  So real estate had to be the answer.  After all, as was said, “You can’t lose money in real estate.”

People borrowed money on terms, that when reset, they couldn’t afford to buy houses that were overvalued.  Then some brilliant MBAs figured if we package up these loans and sell them as investments it will reduce the risk.  Huh?

When everything collapsed by early 2009 there was an incessant screech from the news media predicting the end of the world as we know it.  We were in a “Black Swan” event.  We faced the “Hindenburg Omen.”  A “double dip recession” or worse “depression” lurked around the corner.  Conspiracy theories poured out from writers who had uncovered secret plots to destroy our country.

And many bought into it.  Net withdrawals from stocks reached record levels.  We reached the stock market lows in March 2009.  Yet, throughout the year people still panicked taking more out of stocks even as the market rebounded over 60 percent.

Then came 2010 and the withdrawals continued.  We worried if Dubai would fail.  Anyone even remember that?  Then came Greece, then Ireland.  We watched riots in the streets of Athens and Paris when their governments discussed cutting back benefits to balance their budgets.  And people continued to panic.

Today, the market is up nearly 90 percent in less than two years.  One of the greatest runs in history.  Surely, people now are piling money in?  Not!  Still net withdrawals.  And they have missed perhaps the greatest buying opportunity of their life time.

One of my favorite authors, Nick Murray, writes primarily for financial advisers.  He wrote recently, “What we learn from this bizarre and tumultuous year is no more or less than what we were always supposed to know:  that the closer you are to the markets, to the headlines, to the whole miasma of current events, the less perspective you have.  And the converse: the further we pull back, the more perspective we have, the more comfort we can give people, and the less likely they are to panic out. . . .  The question, then isn’t ‘What did we learn?’  It’s ‘When do we finally learn it’.”

Profound question.

When do we quit listening to the shrieking news pundits who are paid to hype emotions so viewers stay glued to the screen?  When do we stop being alarmed by another extremist newsletter purporting to have uncovered the latest conspiracy to devastate our country?  When do we stop listening to the newest guru the media parades out who spouts off his hysterical predictions?

We all want to get ahead.  And the last two years at times looked scary.  But filling our minds with this garbage can be devastating.  It creates worry and that leads to huge mistakes.

If you’re one of the minority, who kept investing regularly and didn’t panic into selling out, congratulations.  You are one of “The Few and the Proud.”  And you’ll look back one day, if you haven’t already, and rejoice for having the courage.

So what can we learn?  Again?

I can only tell you what I’ve learned.

First, I diligently guard my mind. I’ve written about this before.  I realize the financial news media is not my friend.  Their job is to whip emotions into a frenzy.  They’re professionals at it.  But that’s the opposite of cool logical thinking which is needed in difficult times.

So instead I fill up on positive news sources.  That’s one reason I post “The Weekly Economic Commentary.”  It’s one of the pieces I read weekly which gives a realistic but balanced perspective on the economy.

I also talk with others I trust who are knowledgeable and experienced. But I make sure they’re thinking calmly and rationally though.  Through this fear epidemic I’ve watched even some experienced advisers panic out.

And then I fill up on the good news of God’s promises. He says he will bless us no matter what’s happening around us.  In fact, often in dire circumstances we have the greatest opportunities.  But we’ll only see them if we’re calm and grounded.  God’s word helps me in that.

And finally I remember God promises to care for me as his child no matter what. It comes down to believing if our economy or God is greater.  When we get that perspective right there’s a peace that flows out that’s un-crushable.

Jesus said, “So don’t worry about these things.  These things dominate the thoughts of unbelievers, but your heavenly Father already knows all your needs. Seek the Kingdom of God above all else, and live righteously, and he will give you everything you need.” (Matthew 6:31-33, NLT)

That seems to cover it all.

That’s what I’ve learned.  What about you?

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