March 24, 2020
To do nothing at all is the most difficult thing in the world, the most difficult and the most intellectual.” — Oscar Wilde
Today will be another challenging day for the stock market as we continue to grapple with the Coronavirus. It is difficult to watch our Portfolios lose value. And we must maintain the long view.
We do not believe in market-timing or short term trading, and it is against our religion to sell into a downturn, if we do not have to. We believe in maintaining a globally diversified portfolio and want to avoid the temptation to sell at the bottom. If anything, we want to selectively buy the most beaten-up sectors now while they are on sale. What seems like doing nothing, is actually doing something.
To put things in perspective, the S&P 500 is now down over 28% for the year. Small stocks are down over 40% YTD and the energy sector is down over 57% YTD. Your Portfolio is doing better than that.
In my opinion, the most important consideration is to be well-positioned for the recovery. When the virus is brought under control, it is very likely that the markets will react enthusiastically and rise quickly. We want to be fully invested when that happens. This is our best bet to regain value in the long run. We must avoid making “the big mistake” and selling now, thus missing the rebound.
It really is difficult to stay the course at a time like this. Yet this is our best course of action.
As always, if you have any questions or concerns, please feel free to call.
CEO, CFP® Wealth Preservation Solutions
Personal Family Office / 360 Wealth Management