Fighting Fear with Discipline

The stock market has been in a state of mild panic for the past two weeks.  There are legitimate concerns about the Coronavirus and the impact it is having and may continue to have on the global economy.  Whether it is ultimately called an epidemic or a pandemic, we will only realize its full impact when we are able to view it in the rear-view mirror.  In the meantime, we need to keep a steady hand on the wheel.   

We do not pretend to know the answers.  We didn’t see the virus coming – no one did.  However, we did anticipate that the market would not continue its decades long upward momentum forever.  This is precisely why we invest in a wide array of asset classes in our portfolios.  While equities are getting punished, ‘safe’ asset classes like bonds and gold are rising in value.  This means that we may not have the highest highs, but we also won’t suffer the lowest lows.  Diversification makes for a smoother ride.

We are not panicking, and we do not recommend changing your asset allocation based on short term fluctuations in the stock market.  However, we recognize the importance of providing assurance when the world is running around yelling that the sky is falling.  If you have concerns, please call us or contact us so that we can discuss your specific concerns.  We are happy to provide perspective.