To our Clients,
It was great to be with our Ross Wealth Advisor Family on March 10, 2020. We’d like to share a recap of the evening as well as to connect with those who were not able to attend.
As Joni mentioned, “social distancing” has become the topic of many conversations due to the coronavirus, which is why we will continue to stay connected. I understand there is much uncertainty about the virus, then layer in an upcoming election and an oil dispute between Russia and Saudi Arabia. Uncertainty is never a good thing and something the markets do not like.
Together we have built a solid retirement plan where it is important during times like these not to make panic decisions or try to time the market. It’s normal to be nervous, especially after seeing double digit returns recently.
Historically markets go up and down. Black Monday in 1987, the Tech Bubble starting in 2000 and the Housing Crisis of 2008, to name the most recent, are all reasons why we spread your retirement money over several different types of investments so we can capture as much return as possible when markets swing. We’re in a situation where economic indicators, like the jobs report and the housing report are strong, however fear of the unknown is driving the markets currently.
The markets are random yet efficient; meaning all known and unknown information is built into the pricing. Right now we have a lot of unknown and stocks are down but they all have value. As long as humans consume, we will always have growth.
Some interesting facts to consider from The Center for Research in Security Prices. (CRSP)
- In the last 20 years an investor that missed the 10 best days of the 7300 days in the S&P 500 could expect returns almost 50% lower.
- If that same investor stayed fully invested, he or she could have seen an annualize average of 6.1% growth.
It is important for all of us to ride this out and stay invested with the unique and individualized plans we have each built together.
On a lighter note, as promised, we are sharing the link to last night’s Socially Savvy Baby Boomer quiz. Click here for the link. Generation Z makes up ¼ of the US population and since our clients are “GOAT” we hope some of these new terms will be fun to throw into an upcoming conversation with the younger folks in your world.
Thank you for allowing us to be of service. We look forward to seeing you at our next event or in the office.
Don Ross, RFC®
Founder & President
