As an update, here are my thoughts about the ongoing crisis:
The markets rebounded very sharply last Tuesday, presumably in response to the Fed’s stimulus.
But we still have a long way to go, and the markets are still looking for long term direction.
“One of the biggest lessons from the 2008 financial crisis still holds true: Sticking to your long-term goals, and having an investment strategy to match, will get you where you want to be.”
Investors will be best served by following a plan that was implemented in more normal conditions. Now is not the time to be making changes to your portfolio. Changes are best made in optimistic times, when emotion is not potentially clouding your judgement.
Remember, this crisis will end at some point. In Los Angeles, we will be complaining about traffic on the 405 again. We just don’t know when that will be.
If you maintain your asset allocation, you will be positioned to participate in the recovery when it occurs.
Neither “get in” nor “get out” are investment strategies. They represent gambling on moments in time, when investing should ALWAYS be a process over time.
If you have funds to invest, do so gradually, invest reasonable amounts once a month. Don’t try to guess which stocks are going to be the winners, rather, buy baskets of stocks using index funds or Exchange Traded Funds (ETF’s) to spread your risk.
And remember real investing is a marathon, not a sprint. Stay the course, stay diversified, let history be your guide.
If you have questions or concerns you may have about the effects of the current crisis. Please feel free to contact me by phone or email or click the ‘Let’s Meet’ tab https://plectrumadvisers.com/lets-meet to schedule a complimentary and confidential meeting (virtually for now, of course).
Plectrum Advisers LLC
Registered Investment Advisor