Some thoughts on the current market volatility

By Ryan Gilmer, CFA, CMT Chief Investment Officer

March 10, 2020

As you have probably heard, stock markets have remained volatile in March. Currently, the S&P 500 is down over 19% from its all-time high in February through its low yesterday afternoon. While market corrections are a normal part of investing, they aren’t enjoyable. In fact, they can cause significant stress, fear, or doubt. Here are some current thoughts to help stay focused on what we can control, and take advantage of the current situation:

  • For conservative or moderate investors – Bonds have helped by providing stability and some positive returns while stocks are going down. Investors with bonds in their portfolio have experienced less loss than the overall market
  • For aggressive investors – Time is on your side. Most investors, especially aggressive investors, have time horizons measured in years or decades. The longer you invest, the less the daily fluctuations of the market impact your goals.
  • Consider adding to your portfolio – When markets are down, it’s a great time to consider adding cash to your account. We recommend this even though we don’t know precisely when the market will rebound. We recommend this because it gives you a higher probability of making better returns going forward.
  • Review or update your financial plan – Portfolios exist to help you achieve your financial goals. A solid financial plan allows you the confidence to face inevitable market volatility when it comes.

Each situation is unique. We are here to give you personalized advice and to discuss how we can best respond to the current market environment together. If you want to discuss your situation in further detail or would like more information, feel free to contact us.

Keywords: covid19
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