Information as of March 10, 2020
We have heard from a few of you about your stock market concerns but suspect there are many more who share in those concerns. We invite you to read our upcoming market analysis in the newsletter which you should be receiving in a few days, but thought a timelier response may help calm some nerves and bolster your resolve to adhere to your investment plan.
The markets are down now year to date 16% meaning that many of your investment and retirement portfolios are also down about 10% over that same time period. Frightening as that may be, most all of your investment projections incorporate a bad timing scenario that is roughly twice that amount. As we have emphasized in our newsletter article we don’t pretend to know when the stock market might hit bottom as a result of the coronavirus or how quick it will recover.
We do know from academic research that shocks to the stock market occur causing the market to drop unexpectedly do recover (see market response to a crisis) and that investors who stay invested over the long run tend to get the highest returns. That said, we understand that we are all prone to anxious thoughts, but urge you to focus more on your financial projection and less on the financial news when thinking about your portfolio.
If you are unsure about the assumptions behind your plan or just generally want to discuss your investments, we welcome your phone calls and emails!