Before I begin, I want you all to know how much we appreciate all of you. Many casual friends of mine occasionally comment to me at times like we are currently experiencing: “You must be very busy talking with clients who are in a panic over the recent market declines.” The fact of the matter is that No One…and I really mean, No One has called in a “panic” (as of Friday the 6th). I have spoken to a couple of people today with questions. I am glad they called. They had good questions and I believe they felt better after the conversation. It takes times to get used to volatility. With time, most people “get it” and know how to not only deal with volatility but profit from it.
The stock market ebbs and flows. Sometimes, the up or down is caused by what we are viewing / feeling….like a war, domestic upheaval, inflation or jobs data. This is what we are experiencing now. Inflation is not going away and threatening to get worse (gas prices are up over the last week and groceries are not going down). We just started a war with Iran (as a result crude oil prices are over $100 this morning). The “jobs” numbers last Friday were worse than expected. And on and on and on.
None of this means it is time to leap up, panic and run for the exits. Times like this call for patience, plotting & planning. Ultimately, it may become an opportunity.
- Patience means no big changes in a hurry.
- Plotting means taking a big picture view. What benchmark are you comparing you account values today with? The value a week ago – bad idea? The value at the beginning of the year? --- maybe not such a big change. The value one, three, five or ten years ago? --- now your heart rate will slow because things look pretty good.
- Planning means observing a tough time in the market and using it to make money by buying.
We have worked very hard over the last six months to talk with clients to determine what their cash needs will be from their investments over the next two years. We all know you cannot successfully “time the market” and attempting to do so is just as likely to backfire and hurt you financially. As long as you have your cash flow needs covered and you don’t “have” to sell investments when the market is down….DON’T. Let it ride and the market has always corrected itself. Most importantly, BUY. Look for money in the couch and add to your portfolio in scarry times.
However, if you are losing sleep, or your stomach is generating too much acid, or you keep watching the news, listening to scary podcasts or OMG drilling down in the “rabbit hole” of the internet, call us. We all hear the same messaging. We are happy to talk and discuss your feelings and the real impact times like this have on your investments. In most cases, reality is often much less dramatic or traumatizing than the scary movie we have dreamed up that keeps replaying in our heads.
My best advice. Turn off the news, ditch your phone, go outside, take a walk and enjoy the sunshine and spring flowers. But if that doesn’t help, come see us or at least call.
Wollman Wealth Designs, Inc is a financial services and investment firm in Escondido, CA partnering with families, friends and clients in San Diego County and around the country. Please visit our website, call the office or send us an email with your comments or questions.
Securities offered through Cetera Wealth Services, LLC, (doing insurance business in CA as CFGAN Insurance Agency LLC: CA Insurance License #0644976), memberFINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity. CA Insurance License #0604093
The views stated in this letter are not necessarily the opinion of Cetera Wealth Services, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. For a comprehensive review of your personal situation, always consult your legal advisor. Neither Cetera Wealth Services, LLC, nor any of its representatives may give legal advice.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. Past Performance does not guarantee future results.
An investment in the fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your $1.00 per share, it is possible to lose money in the fund.
Bank certificate of deposits are insured by an agency of the Federal government and offer a fixed rate of return whereas both the principal and yield of investment securities will fluctuate with changes in market conditions.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. Past Performance does not guarantee future results. A diversified portfolio does not assure a profit or protect against loss in a declining market.