Current Market Commentary
As of 03/10/2020
Coronavirus and Stock Market Q & A
If you are watching the financial news, are you asking yourself these questions?
“Why don’t I just pull out of the market and go to cash until things settle down?”
It’s a great question. A simple answer is that market timing is difficult and you won’t know for certain when to get back in. Here’s something you may not realize…being out of the market can be costly:
“Is Baron making predictions?”
We do not make or use predictions to impact actions with investments. We are strategy based, meaning we design investment strategies to match client profiles. The strategies for clients help provide guidance through all types of economic environments. This keeps us away from predicting and helps us avoid behavioral mistakes. We use this approach for our own personal financial situations as well.
The current situation is serious, and quite frankly we’ve seen predictions being made in the media suggesting everything from a non-event to mass hysteria. We are involved in market activities and watching closely the official information that comes from the CDC, Federal Reserve, and other government agencies. We recommend staying calm, understand your Personal Economy and focus on controlling the controllable.
“What’s the plan?”
Our plan/strategy for clients is dynamic. It’s not just the activities that we take during volatile environments, like we are currently experiencing, but also during positive markets as well. We encourage you to review the activity in your account regularly. If you have not done so, look back over the last three or four months. Our process remains - create an appropriate strategy, invest in quality investments and rebalance when needed.
A couple of side notes. These current markets hopefully help you to understand why most of our strategies for clients include high-quality bonds. These are the investments that tend to hold their value during challenging equity markets. Also, if you withdraw from your portfolio to supplement your lifestyle, our paycheck system that includes a dedicated cash cushion helps minimize the need to make sales in equities when markets are correcting.
“What should we be doing now?”
Review your account information over the last few months, evaluate your Personal Economy and reach out to schedule a call or meeting if needed or concerned.
Also, with interest rates at all-time lows, we suggest reviewing any outstanding debts, especially your mortgage, to see if refinancing is beneficial. We can help with the decision-making if needed.
At Baron Financial Group, we take the professional management of your investments seriously. If you are feeling concerned, we are here to talk.
Contact Your Baron Team
For Any Questions
Disclosure: This is a general communication being provided for informational purposes only. It is educational in nature and not designed to act as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction. Past performance is no guarantee of future results. Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research or investment advice.