If a tree falls in a forest and no one is around to hear it, does it make a sound? This is a popular philosophical question that was posed hundreds of years ago. I cannot think of a better way to describe the first quarter of 2016. There were countless articles written and financial programs running with, “This is the worst January market drop in history.” The follow up pieces were dedicated to whether or not the U.S. economy was heading toward a recession and how this latest drop is “the beginning of the end.”
Naturally, most were concerned as the January doldrums extended into February. As you checked your accounts online and waited patiently for your statements, the reality of seeing your hard earned assets fall, tested your resolve. And rightly so. You have spent a majority of your life working and saving to build up the necessary resources to meet your goals. For many of you, your next step was to reach out to me, for which I am grateful. It is during these periods of turbulent markets that I believe you need me most. I appreciate the time we spend discussing the current state of affairs and helping you understand how we will continue working toward meeting your goals.
However, March provided some much needed relief (Surprise! If you haven't checked your account). As it turned out, the performance in March allowed most to recover all of their January/Febuary “losses,” while some have even experienced a gain.
I regularly counsel my clients against viewing their accounts too frequently. The reason being, the short term fluctuations in the stock market have very little effect on your goals, but more importantly, cause unnecessary fear. In fact, there is a considerable amount of data that suggests emotional based decisions are the primary cause for under performing investors.
I will leave you with this final question. If your portfolio goes down in January, but you don’t check your statement until March, did it really go down?
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
