Our Thoughts

With headlines screaming about tariffs, trade wars, geopolitical unrest, and inflation, and markets in a seemingly endless free fall, here's what to do right now...

Ultimately, our conversations with clients during times of extreme fear break down into two primary themes: Those who are looking to try and take advantage of the market selloff and those who are scared and want to reduce risk.

The underlying theme is an overwhelming need on both sides to just do something.

‍We hear loud and clear how sitting and taking these market downdrafts day after day causes feelings of powerlessness, fear, and frankly, frustration.

These feelings are completely understandable given the current state of affairs.

Staying patient and disciplined while continuing to act on a plan, not emotion, is by far the most difficult thing to do during these times.

Have questions? Give us a call.

Additionally, zooming out helps put things in perspective as it relates to your life goals, the market history, and what to expect in the weeks and months ahead.

We build and manage your portfolio based your life. Not the market.

This is true in good times...and in bad.

It's always easier said than done, especially when faced with crushing volatility.

We never make changes to portfolios as a result of emotion, market movements, politics or current events.

A sound plan built for your life goals, a diversified portfolio designed for that plan combined with patience, discipline and faith in the future is the way forward.

The current events of the moment do not warrant a change in our philosophy or our advice and certainly not a change in your plan or your portfolio.

You don't go out and try to fix your roof or windows during a tornado and you should not make portfolio changes based on or during a market sell off either.

In short, if your life goals haven't changed, neither should your portfolio.

Jack Bogle's famous quote “don’t just do something, stand there” has never been more relevant.

A mistake now makes this temporary decline a permanent scar on your financial life.

As the media (and markets) shift from crisis to crisis it's tempting to read an article or watch a pundit speak and think "I can outsmart it, gain an advantage, get out now and then get back in when things are better."

Like Buffet, we believe it's impossible to successfully time the market or predict the outcome of short term events.

So we don't.

Ever.

And you shouldn't either.

This makes the decision to stand firm and remain invested extremely frustrating during a market meltdown, but it's important to remember that no action is still an action.

"For most investors, 99% of good investing is doing nothing, the other 1% is how you behave when the world is going crazy." - Morgan Housel

Patience, discipline and faith in the future during these times is what offers the highest return of all.

It's what allows your current portfolio to continue to compound with reinvested interest and dividends, buying each new share of the worlds best businesses at cheaper prices and building wealth and income for years to come.

Every single one of these declines in market history has had the same ultimate outcome...

They Are ALL Temporary

So rather than resisting or stressing about this temporary decline, embrace it.  

These temporary declines are simply the Price of Admission for long-term success.

Without them you would not be able to compoud your wealth at such staggering amounts decade over decade.

Riding out this decline, like all others before it, is the only way to ensure you fully participate in the recovery when the firestorm of terror burns itself out and the permanent advance resumes.

Since decisions on your portfolio are based on respective timeframe for prupose of the money as well as your life goals, not reacting emotionally is the best and safest option during these times.

Actions to Take

We understand it's uncomfortable to just sit there. Therefore, here are a few actions you can take right now to better your finances... and your life.

BUY. BUY. BUY. We're not talking about your emergency fund. We're talking about additional cash you planned on investing but have not yet put to work. With panic at extreme highs, it is a massive opportunity to buy the best businesses in the world at a temporary discount.  

Contact Us. If you're concerned, reach out to us. Whether it be a phone call or meeting, it will do wonders to help calm your nerves and put things in perspective. Getting advice from the media, family members or friends on what to do on the financial front during these times is potentially very hazardous... don’t.

Portfolio Hiatus. We highly advise putting on a “portfolio hiatus” of sorts during this time. Take a break. Avoid checking your account balances as it will only lead to concern, despair or worse… emotionally driven action.

Media Fasting. It’s nearly impossible to avoid the news, but we highly recommend you do your best to take a "media fast." Avoid financial news entirely. Distance yourself as much as possible. Instead, read a good book, take a walk, workout and spend time with your family.

Write it Down. A great reference for the future is to write down exactly what you're feeling right now at this very moment. Take note of the current level of the S&P 500 if needed. Take a screenshot of the terrible news headlines. Then put it away and revisit in 6 months to a year.

Zoom Out

These declines, while painful, are not unique to history.

Currently, the S&P 500 is down about 17% from its peak on February 19th.

This is the 30th correction greater than 5% and the 10th correction greater than 10% just since the market low of March 2009.

We prepare and plan for times just like this.

We adjust and move on.

Life eventually returns to normal.

It's difficult today and it's scary at this very moment.

But like all others before it...this too shall pass.

Hang in there,