It sure is a media frenzy out there at present! But that’s not new, the story just changes (periodically, sometimes each week). Is it a trade war? Elections? Is it impeachment? Is it missiles in Iran? Though recently the Coronavirus has been in our face each day, what’s not being broadcast and amplified by the media daily is the significant good and positive items that occur every day as well. Attached is our blog post “Don’t Leap Before You Look” which generically speaks to a message to keep in mind today.
More specific to today’s environment-We appreciate serving all of you, and to those of you this past weekend and end of last week that the unbalanced media has understandably upset we send the following message as we know we have not heard from everyone who has been affected. You may be one of those reaching out. Either you are excited and positive, as due to unbalanced media you feel an illogical yet significant “buying opportunity” has been created. Or, it has affected you in a negative or worried way, and with all the media making things worse it’s understandable you are concerned.
We (your household included) are already set up with our clients and their investments for addressing and being ready to ride through this volatile environment. Relying on the structure of your investments in the form of a financial House. That structure allows you to ride through these times with a long-term plan that will work. This plan is already in place for market volatility with any changes that may be needed occurring at the Asset Manager level. The investments that are designated to be either conservative or safe have and will continue to serve their role. In addition, the growth investments will be volatile as we anticipated and discussed up front until things calm down. In both cases, our Asset Managers or products selected will do what was intended and we will continue to execute on your personal plan.
It’s unfortunate that Coronavirus (a virus which I have been advised by medical Doctors has a similar level of danger attributes to many past flus that we have survived with no problem) is the media highlight in the manner being displayed. The Doctors I have spoken with as recently as last Thursday evening are medically knowledgeable, and they are not worried about our community’s welfare being at a big risk and are disgusted with the overblown media. I cannot say who is right, but I do agree with them that based on the facts, we have far less to be concerned about than the media would advise.
This flu story took the impeachment news the week before off the cover, and next month who knows what the distraction will be. A quick reminder, just 15 months ago, last December 2018 and Jan 2019 were either record market downs and/or record market ups, occurring back to back. The same type of scare occurred. Not overreacting is one of the key responsibilities we rely on Asset Managers for.
This is a good time to help your friends or relatives who may not be working with a fiduciary (whose team is an expert in wealth preservation and distribution in the wealth management process) by introducing them to us for a no obligation “Stress Test” or “second opinion.” As you experienced in December 2018/January 2019, with the appropriate structure, there is no need to be guessing, (meaning timing the market going in and out when you guess highs and lows.) We empower each asset manager who is watching closely each day to decide level and type of investment, whether to go short, or be on the sidelines, etc., based on pre-agreed objectives determined by you, the owner of the assets.
This period now is generally followed by another look a year or two later when it’s typical to look back and see this time today as an opportunity for the Asset Managers we trust to make profitable moves due to buying opportunities.
According to some, the market was a bit overvalued as levels, despite the recent fast decline, are still significantly higher than the start of 2019, and in the same range where we were in September of 2019. While we are not sure what will occur tomorrow, it’s positive that today there was market upturn in the face of the “disaster” news we woke up to.
I will reach out further, in the meantime I hope this note helps calm a bit. I realize it’s difficult with all the noise. Again, related while in a “stepping back” style, attached is our blog post “Don’t Leap Before You Look” which generically speaks to a message to keep in mind today.
Thanks again for reaching out and communicating. We appreciate the opportunity to be of service in any way.
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