(Orion) COVID-19 has caused worry around both our health and the health of the economy, and while the specifics of this crisis may be different than some we’ve faced in the past, the principles of sound money management remain the same. Since the pandemic began, exasperated by the economic downturn, and subsequently, the presidential election, most of the calls I have received have focused on several consistent themes: market timing, fear, and in some cases, making drastic changes to a portfolio.
In every case, the person with whom I was speaking knew they were supposed to maintain a long-term focus and ignore the crisis du jour, but the pervasive drumbeat of media pessimism and the very real fears we all face left them with panicked thoughts, long-term focus notwithstanding. Trying to counteract this fear, I’ve addressed some of these common fearful thoughts below, with an evidence-based refutation following.
One of my favorite poems is Rudyard Kipling’s “If,” which begins, “If you can keep your head when all about you are losing theirs…” and I hope these five principles will help re-center on your financial plan and do just that.
Orion Portfolio Solutions understands investing for the long term can be daunting, especially during unsettled seasons, but they are focused on providing solutions that help investors achieve their unique financial goals. They have a Chief Behavioral Officer who put together five principles that will help your clients keep their nerve . . . IF you communicate with them now.
