The Current State is not the Permanent State

Back in July, we became more concerned about economic conditions: rising interest rates, trade tariffs, and a split Congress. We then acted to reposition investment portfolios to be more defensive. As we scaled back stocks we increased short-term fixed income and cash reserves.

For a few months, it seemed we prepared a bit early for a downturn.  But the stock markets changed direction in October, with the U.S. averages falling over 10% from their peak and global markets falling over 20%. While there are no signs of an imminent recession in the U.S., it is clear that this sell down is broadening.

Market declines are part of investing, and they haven’t lasted forever.  The Dow Jones Industrial Average has typically dipped at least 10% once a year, and 20% or more every 3.75 years, according to data derived from 1900-2017. Bear in mind there has never been a time when markets declined and haven’t recovered to advance to higher levels.

Wall Street is on Sale

A lesson that I have learned is to seek and take advantage of market weakness. Declining markets give you a chance to invest in world-class companies at lower prices. Good companies find a way to prosper regardless of the environment.  Our process is to rely on research, experience, and judgment to buy good companies at attractive prices.

If you want to make money over time, add to your investment portfolios in this period of volatility and lower prices. Invest systematically. We can help you to be set up with monthly electronic bank drafts into your accounts, which can be started, stopped, increased or decreased at any time.

Supercharge your accounts by moving larger chunks of excess cash which may be earning a low-interest rate to your investment account.  Add to your children’s and grandchildren’s 529 accounts now, since college costs never seem to go down and your family will appreciate the gift of an education.

No one can predict short-term markets, and investors who sit on the sidelines risk losing out on periods of meaningful price appreciation that follow market downturns. Focus on the benefit of long-term investing and be decisive while this price decline presents the opportunity. Stay on the road with your investment plan, and feel free to talk with us to voice your concerns.

Seminar:  Three Winning Strategies

Over the years we have helped you to plan, invest and protect your wealth. We have helped you with your tax planning and tax returns, and we counsel many of you to prepare an estate plan. Now, we want to help you to organize your personal data, have constructive conversations about intergenerational family finances and make the best decisions you can for your current healthcare coverage.

Join us on Thursday, November 15, 2018, from 10 am-1pm at Scarritt Bennet Center. We’ll be hosting an event we call “Three Winning Retirement Strategies.”

You’ll learn from experts what happens within families as they talk about money and plan for the future.  You’ll learn about the most current Medicare and healthcare plans. And we’ll tell you stories about what individuals and families need to do prepare for medical emergencies that happen in all our lives.

Get a Free ICE Key

Everyone attending our seminar will receive a free Ice Key, a portable, easy-to-use USB flash drive that goes right on your keychain. We’ll help you to fill out the pre-loaded PDF forms with your important medical information. In a medical emergency, first responders are trained to look for the acronym ICE (In Case of Emergency) so doctors have the information they need to make life-saving medical decisions.

Lunch and parking passes will be provided to those who RSVP. Who else do you know that might benefit from a key?  Feel free to bring a friend.

To RSVP please call Liz Clay at 615-673-7795 or CLICK HERE