Every month, our firm sends out a Reality Check to our clients. The topic varies month to month, but it typically covers various aspects of behavioral investment counseling and financial planning. On the heels of the recent volatility over the past week, we thought it would be useful to provide a few paragraphs from a commentary written by Brian Wesbury, an Economist at First Trust, that put a lot of the recent events into perspective.
Regardless of what the financial media is stating as the cause of this pullback, i.e. Fed Rate Cute, China, Trade War, Current Administration, etc., you must understand that it is only temporary. Following the herd and reacting to the volatility can do irreparable harm to your plan. As Nick Murray says, repeat the following mantra: This time is not different. This too, shall pass. Of course, these moments can still be stressful and by no means should you ignore stress.
If you any questions about this topic or wish to receive our Reality Check emails, please contact us.
Regardless of what the financial media is stating as the cause of this pullback, i.e. Fed Rate Cute, China, Trade War, Current Administration, etc., you must understand that it is only temporary. Following the herd and reacting to the volatility can do irreparable harm to your plan. As Nick Murray says, repeat the following mantra: This time is not different. This too, shall pass. Of course, these moments can still be stressful and by no means should you ignore stress.
If you any questions about this topic or wish to receive our Reality Check emails, please contact us.
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