These are certainly tough times that our nation is facing and for some there are even jobs at stake. These are times when tolerance and patience are tested. Compassion and Perspective are two words that I am personally focused on right now. Compassion for those under stress having to deal with a multitude of difficulties, and Perspective for us to ask ourselves “Compared to what?”
Some people are one paycheck away from not being able to pay their mortgage or feed their family and are wondering if they will have a job to go back to. Others are OK in that respect for now, but get really stressed when thinking about their retirement and other account balances.
Part of Perspective is looking back. Despite what you see in TV, most of my clients are down as of end of trading today less than 10% from where they were in January 2019. Part of making it so dramatic is because of the incredible gains in the market during 2019 and beginning 2020.
As tough as this might be, I encourage you to go back to our goals when we first invested and look at our objectives for WHEN we needed to draw money.
There is a legend that this quote is attributed to Warren Buffet (I cant find verification of that) – “I have lost nothing because I have sold nothing” – That might sound a little blasé and insensitive, but in conditions like we are having now it’s true.
The tough thing is to realize that the growth is not ours until we sell, and the losses are also not ours until we sell.
As of writing this, the Dow today had a record “UP” day ever. If you were out of the market today you missed it. It’s a great example of why we encourage people to stick to their long term plan. We anticipate that the volatility will continue as legislators battle in Washington and more coronavirus testing occurs and numbers increase worldwide; with the hope that the number of healthy and recovered cases far exceed the most difficult ones. Again, patience will be required here, and we hope that the acts by Congress and the President will help in settling markets worldwide.
(Source – JP Morgan Asset Management)
Feel free to email me today at dcoen@sageviewadvisory.com or call 714-813-1703
About Dave
Dave Coen is a Financial Advisor with SageView Advisory and the CEO of College Planning America. Along with his retirement financial industry experience, he is a College Planning Specialist. He works closely with individuals and families to provide comprehensive financial planning that addresses all elements of their financial picture. Learn more by connecting with Dave on LinkedIn.
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