In your investing lifetime, you may only see a situation like therecent novel coronavirus (COVID-19) a few times. This is acircumstance where complete candor is necessary. The truth isthat we can’t yet gauge the full economic impact, and by the timewe can, the volatility may have passed.It’s important to remember that, in terms of market declines, therecent drop isn’t unprecedented. In fact, in the last six day-to-daydeclines of 3% or greater, the market rebounded higher a monthlater. Past performance is no indication of future returns, and it’suncertain whether history is a good teacher in this instance.
Markets Have the VirusRight now, markets are reacting to the news because the outcomeis unknown. In a way, COVID-19 has “infected” markets allaround the world. In times of market uncertainty, some tradersbelieve the best approach is to sell. Fear is driving decisions.Nobody would blame you if this uncertainty gave you a bit ofanxiety, as well.
You Don’t Buy Snow Tires in a BlizzardBy working together to develop an investment strategy that fitsyour risk tolerance, time horizon, and goals, we have beenpreparing to weather turbulence. When a blizzard hits, the peoplewho already own snow tires are usually happier than thoseventuring out into the cold, hoping they’re still in stock. In thesame way, it’s generally best to make decisions during periods oflow market volatility. We’re in the middle of the storm right now.Here to Support YouThis may be the time you need a trusted financial professionalmost. During most volatility, we advise you to “stay the course,”and that generally proves to be the best course of action. In timeslike this, however, it’s easy to question conventional wisdom.Remember, I am here to help you and your family during thistime. Whatever decisions you make, please allow me to supportyou through them. Feel free to reach out to me with any questionsor concerns.
From Your Advisors At Accel Wealth Management