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Allow Me To Worry For You

March 21, 2020

What I am doing to stay on top of markets during scary times.

For context, below are some of the big events that happened in the last 20 years alone causing investors to worry:

  • The dot com/tech crash 
  • “Y2K”
  • The 9/11 Terror attacks
  • The recession of early 2000’s
  • The Real Estate and mortgage crisis of 2008
  • Market meltdown in 2008/2009
  • The re-election of President Obama in 2012
  • Ebola/SARS/MERS
  • “Brexit”
  • The election of President Trump in 2016
  • Nuclear War with North Korea
  • Coronavirus
  • Etc Etc Etc

All of the above caused at least some people to worry about their money and investments.

The longer I am in this business and the more research I do, the more I continually and consistently find that while markets are resilient, often investors are not. Why is that?

I think it’s actually quite simple. I worry about things I am not an expert in myself. The medical field is a great example. Whenever myself or my family is sick or hurt, I worry. Why? Because although I can research symptoms on Google, the truth is I am not a dedicated medical professional, and certainly not a doctor. I can “research” but I actually have no ability to decipher what I am reading. Is it accurate? Is it a quality take on my situation? I don’t know and I can’t possibly catch up to the medical experts with the decades they have spent in their field.

So, I worry. And that is normal. In fact, it’s probably the correct response. If I didn’t worry, would I even care? My family’s health is really important to me so of course I worry! I’m not a robot. Emotions are normal. But I engage a doctor to decipher the information then, I trust them to do their job.

It is completely rational for my clients to worry when markets have a significant downturn. And although you have concerns, you’ve hired me to worry MORE than you. Allow me to stay on top of the daily news and pay attention to what is happening. You don’t need the added stress. One of my many jobs is to decipher the real news from hysteria. 

So, what exactly am I paying attention to on a daily basis (and even more so during turbulent times)? I am watching the various domestic, international, emerging, small, large, value, micro stock markets, etc. I watch them all day. I have them all saved on my phone and am constantly monitoring what is happening. I want to see where they move on a given day. Then, I compare the movement to your portfolio. Is the portfolio moving in the direction that makes sense based on the markets? If so, we are ok. We have built your portfolio in a very scientific manner, and we rebalance your portfolios accordingly.

What would have to happen for me to start worrying?

It isn’t necessarily the direction of the markets that would cause me to worry. If your portfolio isn’t moving in accordance with the way we’ve built your portfolio, then I’d be concerned. I would call you to make a change. If your portfolio is moving with the global and domestic markets in accordance with the portfolio design, then the portfolio is not “broken” and I’m not worried.

Also, snakes make me worry. I hate snakes. 

In addition:

If you are my client, it is highly unlikely you are 100% invested in stocks. You are likely invested in stocks around the globe, as well as high-quality short-term bonds. Also, you most likely have insurance products we have placed on your balance sheet to be non-correlated (they move in the opposite direction of stocks) assets to global markets. Lastly, it is likely you have cash reserves in position on your balance sheet to help weather any storm and market volatility.

We don’t put all your eggs in one basket, so to speak.

What would make me panic?

The fall of Capitalism would make me panic.

The stock market is made up of individual stocks representing thousands of different companies.  Over the long-term, the value of each individual stock is based on the future profits of a company.

Provided the majority of these thousands of companies continue to work towards growing their companies as they do today, then the global markets will weather temporary downturns and continue to grow over the long-term.

Let me do the daily tracking and “worrying” for you. In the meantime, if you are experiencing problematic emotions over this recent market swing, please call me!  

Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS). OSJ: 900 Ashwood Parkway, Suite 400, Atlanta, GA 30338 (770)-390-2600. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Ashford Advisors is not an affiliate or subsidiary of PAS or Guardian. Ashford Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor.  CA Insurance License #0L49687

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS).  Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Ashford Advisors is not a registered investment advisor or an affiliate or subsidiary of PAS or Guardian.  Ashford Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. CA License ID #: 0L49687. | 2023-158307 Exp. 07/25

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Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 5280 Carroll Canyon Rd, Suite 300, San Diego, CA, 92121, 619-6846400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. WestPac Wealth Partners LLC is not an affiliate or subsidiary of PAS or Guardian. Insurance products offered through WestPac Wealth Partners and Insurance Services, LLC, a DBA of WestPac Wealth Partners, LLC. CA Insurance License Number - 0L49687. Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC.  (619) 684-6400. PAS is a wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. CA Insurance License #0L49687 | Terms of Use | Online Privacy PolicyImportant Disclosures |  2023-158307 Exp. 08/25