The Coronavirus outbreak has been tragic to many, and scary to all. We hope the spread slows, and fewer people are killed by it as the world comes to grips with how best to deal with it.
As I write this at noon today, the markets are “only” down 1 to 1.5% for the day. The 10%-plus selloff this week has hurt all of our portfolios. Please be assured that we are monitoring your assets closely, and will take actions as needed. But also, please remember, we have been talking about when the next recession will come, and took more defensive strategies with all of our clients over the last 18-24 months. That strategy held us back slightly in 2019 (by not being over-weighted in US Growth stocks), but, as in the past, should help us significantly on the downside. Our portfolios will still be down, but hopefully not as much as the markets.
Whether this is the beginning of a recession that could last 9 to 24 months, or just a pothole along the way to higher markets, we cannot predict. What we do know is that we will do some strategic buying along the way, whether the markets stay down for a few weeks, or a few years.
We do not believe aggressive trading out of and into the markets in times like these makes more money in the long term. Market timing just doesn’t get the job done. Our slower, more strategic approach to risk management has worked well in the past.
As always, please feel free to reach out to any of us at ZWM with any questions and concerns.
Thank you, Tom
Thomas H. Zimmerman, CFP® A NAPFA-Registered Financial Advisor
Zimmerman Wealth Management, LLC™ OUR NEW ADDRESS: 500 DAVIS STREET, STE 1005 EVANSTON, IL60201
Direct: 847-556-3201 Office: 847-556-3200
Trusted Fee-Only, Fiduciary Advisors Since 2003
Please note that ZWM cannot and does not give tax or legal advice.Nothing contained in this message shall be considered as such.Please consult your tax and legal advisers for any such advice and recommendations.
The Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.