What Happened
In case you were on vacation or missed CNN, the US stock markets slumped last week. By Friday afternoon, the stock market was down about 10% from the market high in May of this year. So far on Monday, the stock markets are bouncing around with somewhere between an additional 2-5% loss.
What We Think
While this may be scary, this is something we’ve been expecting for quite some time. It seems to have been triggered by economic uncertainty in China. Downturns like this are common, especially when a bull market has lasted a long time like this one has.
What This Means For You
We believe in our broad diversification strategies and portfolios constructed to achieve client’s long term financial goals. While these big market movements are worrisome today, in the long term this should have minimal impact on your life plans.
What You Should Not Do
- Don’t fixate on the news! Newscasters and supposed experts are looking to fill air time with exciting sound bites so that you will watch.
- Don’t panic. This is not 2008 and the indications are that the economy is in a totally different position.
What We Won’t Do
We won’t be complacent. While we do not advise any major changes to your portfolios, we will be assessing whether to rebalance, looking for buying opportunities for those who have cash on the sidelines and consider tax loss harvesting.
As always, we are here to discuss your particular situation. Please feel free to give us a call.
Amy Brandts – Nancy Rick – Kristin Rodriguez
703-865-4092