Tariffs, Recession, Market Losses, Oh My!

I do not generally write mid month blog posts, but blimey, these are indeed crazy times in the world right now! We're bombarded with news of market declines, escalating tariffs, and looming recession fears. It's a natural question to ask: "Why is my Financial Advisor recommending that I stay invested?"

Because if you hold a well diversified portfolio that aligns with your risk tolerance and financial goals, remaining invested is the best advice.

It is natural to feel anxious and to check your investments more frequently, I know I am! However it is crucial to remember reacting emotionally to market downturns can be detrimental to your long term financial health.

But why? Everything keeps dropping and I see my retirement savings plummeting! Shouldn’t I sell everything and wait this out in cash until things look better?

No.

And here is why:

After every single market crash, the market recoups higher than it did before. EVERY SINGLE TIME. And attempting to “time” the market - selling now and trying to buy back in at the perfect moment - is extremely difficult and leads to missing out on the recovery that will happen.

While I could share charts and graphs to illustrate these points, what truly matters is your confidence in your financial plan and your financial decisions. Feeling in control of your financial future is essential for weathering market volatility.

To reiterate, I do not sell investments, nor do I receive any compensation based on your investment choices. My perspective on this is unbiased, and I genuinely believe that the advice to stay the course is the most sound approach right now.

This focus on your long-term plan is how you effectively weather the current storm. If you'd like a second opinion on your portfolio or want to proactively take greater control of your financial life, please reach out to schedule an appointment.

Finally, I would be grateful if you would share this message with anyone you know who is thinking about selling their investments. It's important to have a clear understanding before making such a significant decision.

I'm here to help as we experience these turbulent times.

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