As an update, I wanted to share a few more thoughts related to the current financial markets.
The stock market can’t see around corners right now, but that doesn’t mean it won’t. As hard as it is to feel right now, at some point this crisis will ease.
My advice to investors is still the same: The only action you need to take is to make sure your portfolio is properly diversified.
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.
I don’t recommend selling before the market drops, or buying now that stocks are cheaper. Neither of these actions will serve your long term objectives.
There will be a recovery, we just don’t know when it will be. As long as your portfolio is properly diversified, you will participate in the recovery when it occurs.
Stick to the plan you had in place before the current crisis presented itself. At some point we will return to a more normal world, even though it doesn’t seem like it right now.
If you have money to invest, put it to work just as you would in more normal times. Don’t try to time the market, rather, invest reasonable amounts at regular intervals. You will mitigate the risk of guessing wrong with this method.
I’m happy to chat via phone or email. Please feel free to reach out.
Plectrum Advisers LLC
Registered Investment Advisor