Monday brought another volatile day of market activity and we know that – even if we haven’t heard from you – you may be experiencing some anxiety. While you’re probably receiving a message from every email list you’ve ever been a part of on what they’re doing with regards to COVID-19, we hope that you’ll find this message full of useful information.
The overarching theme of the decisions we’re making is to reduce the potential for regret. This means something different for everyone. We’ve spoken with several of you over the last two weeks. In most cases, our conversations have been recalling the ways in which we have been preparing for this moment for the past 12-18 months. We’ve talked about how we have positioned a portfolio that is unique to your financial planning needs. While no one could have predicted the cause, very few were surprised that something came along to put a stop to the 11-year bull market.
Here are a few things to remember as we ride through these bumps together:
1) Keep in mind that the planning we’ve done has been focused on you achieving your specific goals. While glancing at a market activity can show you what’s happening broadly, it doesn’t give insight into how this activity may be impacting you. The plans we’ve put in place over the last several years anticipated that there would (and will) be significant downturns in the stock market. If you want to talk about how this pullback factors into your financial plan, call us.
2) Look to history to get a sense of how previous market downturns have acted. We have often reminded you that market corrections happen with some frequency. Since the bottom of the last recession, we have had 6 market corrections, – 10% to – 19.99% drops, with the shortest being 13 days and the longest being 100 days. While the current bear market, which started on February 19th, has yet to bottom, we are confident it will.
3) Prioritize caring for your personal health and mental wellbeing. Many of us are practicing social distancing in one way or another. Be sure that you’re staying active, making use of the ways technology has allowed us to stay in touch through video chats, and use this time to do things that fulfill you personally.
As for our team, while we have not had the virus affect any of our employees as of this time, we are taking a proactive step to help “flatten the curve” and reduce the rate of spread of the Coronavirus. We have decided to work remotely and hold virtual meetings in lieu of face to face for at least the next two weeks, following the recommendations of the CDC and our state leadership. We have the ability to work from home as seamlessly as if we were in the office, including at our extensions. This is not new to our office, as we’ve all had the ability to work remotely for quite some time. If you will be coming by the office, please give us heads up so we can be sure someone is here to help you.
Our thoughts are with you and your families in this most unusual time. We send our utmost respect and gratitude to the folks on the “front lines” serving our community in every way, from hospitals and doctor’s offices to grocery stores and gas stations. A big thank you, too, to those of you who have reached out to us to offer your support and concern. It is very much appreciated.
We know you’ll join us in doing the best we can during this time of social distancing to slow down the progression of this viral invader. Be safe and don’t hesitate to reach out to us at any time.