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Over the past several months, things in the financial world have been quite volatile. After all, we are seeing some things we haven’t seen in a long time. Rising rates, inflation, supply chain issues, etc. This has caused markets to react and adjust to the situation, albeit in a bumpy fashion. And right on time, the media and other usual suspects are doing what they can to create an environment of fear, doubt, and uncertainty. Everyone has an opinion about what they think is going to happen and how they “feel” based on the endless amounts of information out there. We look at our accounts and see things are down. The next logical step seems like we need to DO SOMETHING, so we seek out data that confirms our fears, yet at the same time raises even more questions. We wonder how this will affect our retirements and everything we work for. Are we going to be, OK? Lots to unpack here.

First, the investment world. As we sit here in the current market environment, it seems easy to play out various scenarios about down markets, just like it always does. How long will this go on? What if this or that? Here’s the bottom line. Investing is about averages and sometimes markets go down. The problem comes at the exact moment we go from that simple fact to extrapolating into what more “might” happen. Here are some strong thoughts on investing that we believe need to be mentioned. 

• Using short-term information to make long-term decisions doesn’t work very well.

• Well thought-out diversification is very important. Portfolios work together as a whole, over time.

• Buy low, sell high is a really good idea, but we understand how hard it can sometimes be.

• If you decide to get out, you must also determine when to get back in.

• When you feel like DOING SOMETHING, you may be disrupting what we are doing on your behalf.

• The people you watch on TV could care less about your financial well-being. I promise.

If you happen to think that the above bullet points are simply platitudes, let’s talk about the emotional side. We understand that investing and wealth management are very complex, and not just from a financial perspective. When you find yourself in that emotional state where fear is taking over, stop and ask yourself how relative the information you are getting is to you and your life, personally. Second, look at the actual plan we built, review your numbers, and remember that your plan determines how we invest, not the other way around. Third, we work in all weather and part of the planning we do takes volatile markets into account. We know that the head and the heart often do not get along during tough markets, and it is there where we hope to add value.

Some final thoughts. Our firm exists to serve those who value what we do. We have a highly skilled and dedicated team that seeks to make your lives better with us in it. Whether it’s education, complex planning or processing through the emotional side of volatile markets, we believe what we bring helps solve problems, provides clarity, and allows people to fulfill their journeys. So get out there, enjoy your life and let us do the heavy lifting. It’s what you pay us for, and we are honored for the opportunity.

Investing involves risk. No investment strategy can guarantee positive results. Loss, including loss of principal, may occur. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Diversification is an investment strategy that can help manage risk within a portfolio, but it does not guarantee profits or protect against loss in declining markets.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. (C) Twenty Over Ten