Keep a Long-Term Approach
It is important to be patient with the market ups and downs. This is not fun, but it is important to take the down swings with the up swings. The long-term goal of investing is to allow your money to grow for you. Selling at a low is locking in a loss.  Dependent upon the news flow (since fundamentals don’t matter to the market in a time of crisis) and if it doesn’t get worse than expected, I personally believe that the low we set early last week may very well be the low. Having said that no one can know for certain as we can’t forecast the headlines we will have over the next month. 

I am firmly convinced that the market will resume it’s upward climb after this crisis passes and we go back to our daily lives. The fundamentals of the economy going into this and the health of the financial system in particular are in much different shape than in 2008. Also, we have had an unprecedented amount of both fiscal and monetary stimulus thrown at the problem this time and without a lot of delay in implementation. This will serve as a very strong tailwind on the other side of this crisis. In the short term I would expect a very choppy market that will vacillate greatly on a day to day basis.

The Opportunity

Bottom line, we believe that the current situation presents an outstanding long-term opportunity for those who have cash and are willing to put that cash to work at this time. As stated above we do not have a crystal ball in the short term, but I firmly believe that we are much closer to a bottom than the top. One of the things I have noticed is that everyone is saying we will go back down and make new lows. My experience tells me that when everyone believes one thing with such certainty that the market has a way of proving them wrong. It is definitely not a time to take speculative risks, but for those who can handle it this is an opportunity to gradually increase their exposure to equities, for those who have a long-term perspective

If you have any questions regarding the market or anything else related to your lifetime dreams you would like to discuss with us, please reach out and we would be happy to schedule a call or video session.   We are here to “Empower you our clients to achieve your lifetime dreams.”  Take care of yourself, your loved ones and their health.

Rick Isaac