We hope you are enjoying the wonderful weather we are having as the season gives way to summer and with it hopes of travel and venturing outdoors! Now is a time where we are focused on our gardens, vacations coming up, or summer projects, so I will keep this short and sweet.
It is our duty and pleasure as your Investment Advisors to make sure you are knowledgeable and up to date with what is happening with the markets, world issues and how they affect your investments. Below you will find a summary with our most frequently asked questions, that I hope you will find informative and with it, what you can expect for us, your team.
Most Frequently Asked Questions:
Why is the market so volatile?
- The market has been yo-yoing as a reflection of volatility surrounding mostly inflation and interest rates. The “four headwinds” that have fueled market volatility in 2022 (inflation, central bank policies, the war in Ukraine, and the pandemic) have not dissipated for the most part, but they should ease during the balance of the year. We have dealt with all of these issues in the past but not as a package.
Are we headed toward a recession?
– Likely. Remember, recessions are NORMAL. Some may have been through it already with your portfolios and for others this may be new. Recessions are inevitable and part of the normal market cycle- They come and go, just like winters, and move on making way for a spring of growth to follow.
Can money be made in a recession?
- Yes. – A balanced portfolio is the proven best approach to weather market volatility over the long term which is what we strive for and will make tactical; changes to add a bit more into certain spaces given the market outlook.
Are gas prices going down soon?
– Unlikely. As long as this inflation volatility persists, we will see it reflected in the gas prices. It will cool off eventually but we believe, according to our experts it will likely persist through the summer.
Given the market volatility should I move to Cash?
- If your time horizon for investments is 3 years plus +: No. Stay the course. It will simply be a blip in the radar of the bigger picture for your long term savings goals. It is better to stay in the market as market timing to get back in can be very difficult, even for the experts.
- If your time horizon is less than 3 years: (ex. taking all funds out for home or large item purchase or need a substantial amount for a big trip etc)-Please call or email to discuss. Let us know your short term goals- if we don’t already-so we can make sure you are properly allocated and balanced for the near future.
- If you are getting monthly income from investments: -No. We likely have already met or scheduled to meet with you to ensure you are properly balanced to continue those payments and will meet in the fall to reassess.
Is it a good time to buy into the market?
- Yes when markets are down it means some things are on sale, depending on what you are looking at investing in. If you have a pre-authorized contributions running, congrats; you are reaping the benefits of dollar cost averaging. Meaning, you are buying on sale and when the price goes back up you will have gotten more shares for your dollar.
What you can expect from us?
Our job is to shepherd our client this rough time with a balanced portfolio and keeping you as informed as possible, so you know what is coming down the pipeline. A wise investor is an informed investor.
As a reminder, included in our services to our clients we offer:
- Life and Health insurance
- Debt Management and Cash Flow advice
- Financial and Retirement plans
- Tax mitigation and Corporate/small business solutions
- Environmental and socially responsible investing solutions
- Retirement and Education Savings Plans
- Mortgages are by referral only
- Estate Planning and Wealth Transfer
Take time this summer to make sure you have a plan in place for the future, wills up to date and are maximizing on your tax credits and deductions for next year. That cash flow and debt management is well defined, and you are having discussions with any adult children to look at future plans. We are here to help with these conversations and please feel free to reach out if you would like to book a meeting to discuss any of the following included services.
We would like to hear from you!
Please keep us afloat to any short-term large purchase or lifestyle changes you may be looking at so we can balance your portfolios accordingly.
How can we serve you better?
- Let us know by sending us an email!
If you have any additional questions, please do not hesitate to reach out to Diana to book a time to chat with David or Katlin.
For your safety and convenience, we are doing client meetings by phone, Skype, Zoom, or office visits. We have protocols in place to do in-person meetings at our office, with masks, sanitation, and limited people. If you would like a portfolio review or updated financial plan, you can always reach us to schedule an appointment by contacting Terry at email@example.com and (289) 479-5059 or Diana firstname.lastname@example.org and (289) 479-5512.
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