Our office will be closed on Monday, June 20th in observance of Juneteenth National Independence Day.
The market downturn entered a new phase this week. Fears of an inflation/Fed-led recession are increasing, leading to broad selling and an official bear market. There are some important success skills to maintain during times like this:
- Don’t Panic Sell: It is likely that much of the market decline is priced into the market already. Selling now will mean probably missing the recovery when it happens.
- Stopping contributions: Unless your job and earnings are likely to be affected by a slowdown, you should keep adding to retirement plans and other investment accounts. These declines are a great opportunity for long-term investors.
- Remember that dividend and interest reinvestment during market declines means that you acquire more shares. More shares mean more potential improvement when a recovery occurs.
There are times to deviate from the above, but they are less common. There is a powerful human desire to avoid losses whenever possible, but investment risk and occasional severe (and temporary) losses are the price investors pay for the long-term returns generated.
Knowing this, we understand how distressing the turmoil can be and we are happy to discuss your specific situation.
