Cornoavirus concerns continue to impact the financial markets, as have all the numberless crises that have gone before it.
While the potential human and economic effects are very unsettling, what actions should a prudent investor take given this new development?
Short Video Recap Here: https://youtu.be/Wsy6OTuY-yI
It remains impossible to predict when and how this problem will be resolved. Likewise, it is impossible to know when and how the markets will anticipate (or react to) such a resolution.
In this episode of the Financial Symmetry show, hosts Chad Smith and Mike Eklund, evaluate all the available information to determine how you should approach your investment strategy.
Market declines are a regular occurrence and happen frequently. Selloffs provide an opportunity for investors to absorb new information, squeeze out excesses and reset values to more attractive levels.
For existing retirees, we set-up portfolios to include 5-7 years’ worth of high-quality bonds/cash to absorb market declines. For savers, market declines are great news as it allows you to buy stocks at lower prices through regular contributions.
We understand the desire to try to head off market declines by moving into safety. However, our view is that the only way to capture the full permanent returns of equities is to ride out their temporary declines.
The danger of trying to time the market is that you will sabotage your personal investment strategy by getting out at the wrong time and then compounding that by getting back in at the wrong time.
The Financial Symmetry Podcast is an original podcast from Financial Symmetry in Raleigh, NC. To learn more about the show or the past 105 episodes, visit https://www.financialsymmetry.com/retirement-podcast/.
The hosts and guests in this video do not render or offer to render personalized investment or tax advice in this podcast. This podcast is for informational purposes only and does not constitute individualized advice or a guarantee that you will achieve a desired result. You should consult with appropriate tax and financial advisors for advice specific to your situation.