When people get sick the doctor usually recommends bed rest and plenty of fluids. When the market gets sick, what does your financial advisor recommend? Just like the flu or any other sickness, the most important thing to remember is that it takes time for a sickness to run its course and get out of your body. The market is no different. It will take time for the coronavirus to run its course. We could see a potentially prolonged impact from the coronavirus if the number of confirmed cases continues to grow and companies continue to shut down events. We believe this is going to have a cause and effect on the economy.
So, what should you do in the meantime? Here is our prescription for a market that gets sick:
1. Don’t panic and make emotional decisions. Base your decisions on facts, not opinions.
2. When doctors prescribe treatment plans, they have protocols and rules they follow, and situations like this are no different. We have a rules‐based strategy that we have researched, tested, and planned its implementation based on both the ups and downs in market history. Trust your well‐planned strategy not your gut.
3. Review your plan to make sure you are invested in the best model for you. If you are highly concentrated in one position or taking more risk than you are comfortable with, consider diversifying your portfolio. We believe this is not a time for a knee jerk reaction, but times like this call for a healthy review process.
The bottom line is, as long as the coronavirus is growing, people’s concerns will most likely continue to grow creating uncertainty in the markets, which will create volatility but it will also create tremendous opportunity. Review your plan to make sure you are confident and trust your strategy so your investments don’t catch the coronavirus. To schedule an account review with your advisor, please call our office at 601‐856‐3825.