WealthConfidence During Times of Uncertainty
By FirstWave Financial
Stock market declines and volatility are no surprise to experienced investors; most often the surprise is what causes the volatility. The recent and growing concern over coronavirus and the economic impact brings a constant flow of new information. This is a “rogue wave” event that has taken the markets and investors by surprise. The markets are attempting to price in the known information, along with much that remains unknown at this time. The impact of this virus on the actual economy in the coming months is still being tabulated by the market and the fear that is being created by the unknown is real.
Our response at FirstWave Financial to COVID-19 is consistent with our approach to past market events and world crises. We encourage and support our clients to remain committed to your goals and plans put in place during calmer times. Your plan has contemplated market volatility, and while watching the talking heads sort out how we should feel is a temptation, we keep the focus on what we can control, rather than the things we cannot influence.
Markets are expected to fluctuate, but the financial media may amplify the perceived significance of an event and its expected impact on the financial markets. Investors should not let the crisis of the day affect their long-term strategy and sentiment.
Despite many previous crises, the capital markets have rewarded disciplined investors. Dealing with uncertainty is one reason why investors earn a return over time, patiently adhering to their investment policy and keeping their reasons for investing top of mind.
Following sound investment practices can help investors endure a market downturn while keeping the headlines in context during turbulent times. At the close of a recent market segment a TV anchorman mentioned to stay-tuned as “You cannot afford to miss the next segment,” our thought is that you may not be able to afford to watch it. To help “mute” the headlines we have included “Tuning Out the Noise” here for you in both video and written formats.
Click Here – Tuning Out the Noise
We have been and will continue to be proactive in re-balancing client portfolios to take advantage of market moves, as we buy low and sell high on purpose, over time. We are not reacting to the volatility, but using it for the long term benefit of our client’s portfolios.
We encourage you to reach out to us here at FirstWave Financial if you need help assessing your plan and your readiness to weather the market volatility, or if you just need to talk! We stand by to help you, your family, and friends as all move through this challenging time.
You should not assume that any discussion or information contained in this publication serves as the receipt of, or as a substitute for, personalized investment advice from FirstWave Financial. A copy of the FirstWave’s current written disclosure statement discussing our advisory services and fees is available upon request.