How Long to the Other Side

The market recouped about half its losses over the past two weeks, as investors weigh risks and grapple with when life will get back to normal. Some investment strategists say we’ve hit the bottom; some say this will last longer and be deeper than the Great Recession; some say it may lead to a global Depression. Fact is, no one can pinpoint the pandemic’s end. We could see further downside. The market has always come back as businesses figure out how to profit amidst new realities. A long-term view has served investors well. Yet it’s not always easy and sometimes very, very difficult to keep that in mind. If you feel you need to de-risk to maintain some sanity you can always shift your investment mix toward bonds (see the chart below).

What to Do? It’s Worth Repeating
1. Ignore financial headlines! Bad news is often overhyped and over repeated.
2. Carefully review your budget, savings, and short-term goals. Its recommended to have 3-6 months of expenses in checking and short-term savings.
3. Keep to your long-term game plan. However, if you’re worried and might feel more comfortable making a change until we find more certainty, that can be done. Keep in mind that also means you could miss upside when the market rebounds.

 

 

 

 

Jerry Matecun – Founder, President
Expert guidance to plan your future, preserve your lifestyle, and retire with confidence. For a confidential consult, contact me at jerry@compoundvalue.com or 949-273-4200.

 

PLEASE NOTE: Nothing herein constitutes investment, legal, or tax advice. For details please see Disclosure.