I understand your concerns about the stock market and the temporary strain it’s putting on your portfolios along with the anxiety it is causing and thought it would help you to know that I’m still here and that I’m still recommending you take no drastic action at this time and why.
First, as for specific advice related to investments, the strategy is to focus on the short term. Do you have enough cash or resources to get through the next 6-12 months? If the answer is yes, stay the course and do nothing. If the answer is no, and you need to sell something, please reach out and make an appointment. There is always something we can do to minimize the damage even if you need to sell now. If you have not touched base with me in the last year or so, it’s always advisable to have a check up.
For the first time since this crises began, I am incredibly encouraged by the massive and appropriate response taken by individuals, businesses, schools, organizations and entire communities over the last 24 hours in focusing our attention on the real and imminent threat of this potentially deadly virus. This is a time to respond and take action without panicking. Once we get the virus contained, the stock market will recover on its own. The problems are not within your investments and I want to remind you that your portfolios are designed to withstand this pressure over time.
This is a dynamic situation that will likely continue to be volatile, resulting in wild swings, until fear and uncertainty is replaced by hope and optimism. That hope and optimism will be driven by the actions of each of us as we focus on the real threat, COVID-19. Luckily, as humans, we are equipped to do this. When we unite against an enemy to our collective well-being, we are incredibly resilient and effective. When we reach out to our friends and neighbors in need, we have an opportunity to see what we’re really made of. And we’re made of some incredible stuff, just wait and see. Opportunities like this, fortunately, only come along once in a great while.
Opportunities to help each other and to acknowledge and appreciate what we have are among the rewards that await on the other side of crises.
For me, this is our “It’s A Wonderful Life” moment. But this time, our goal is to avoid a run on our hospitals, rather than banks. We can handle this by slowing the pace of spread. If too many people are sick at the same time, hospitals will be overwhelmed and chaos ensues. It’s the same with the stock market. Everyone rushing for the exits at the same time also results in
chaos. BTW, our banks are extremely healthy right now thanks, in part, to reforms put in place after our last Great Correction in 2007-2009. And our economy will survive and thrive again, along with our portfolios. In time. After all, it was just about a month ago that the DOW reached its all time high.
If you need a visual, I see our portfolios as treasure chests that turn our cash into riches. And the only thing that we have to be mindful of, is when and how often we open the chest to remove our riches. The trick is in knowing it’s always there and it’s always growing and if we resist the urge to take out too much at once, there will be enough to last our lifetimes, and then some.
The good news is, there’s always something we can do to get to a better place and right now we should be focused on what we can control. Each of us should be focused on COVID-19 and to the extent that we can prevent getting it or spreading it. Temporary changes to how we live our lives is the greatest impact we can have and the most powerful tool at our disposal. In my own life, I’m making changes based on two questions; How can I stay healthy? and How can I help?
As of yesterday, I am only seeing clients remotely via phone or video chat. I intend to keep my regular hours Tuesday thru Saturday as long as I’m able and may provide updates like this periodically. This is the most efficient way to keep up with the volume of calls and emails while keeping all of my currently scheduled appointments. I encourage you to reach out via email if
you have concerns. Please know that I will respond to all requests as soon as I’m able and I appreciate your patience.
I promise you we will get through this. Our innate generosity and desire to help in a crises will rule the day and we will survive. I pray that the damage and suffering will be minimized by our massive and loving response to this very real, but manageable, threat. This is our time to step up and show how powerful we are when we align against a common enemy.
My money is on US, literally.
Lots of love,
Melissa