Communication between client and advisor is important during the best of times. It is imperative when there is a crisis. We here at Thrive Wealth Advisors believe the current market conditions rate as a crisis.
We are not surprised the market corrected after an 11 year bull run. We were surprised by the rapidity and the actual facts surrounding the correction.
At times like these some advisors are afraid to communicate. They feel somehow responsible for a “market they cannot control.” The funny part is it has always been a “market they could not control.”
What can you do to address the current situation?
- What are your short term needs?
Assess current spending habits. Where can you save or cut back. Do you NEED to spend money on this or that? Certainly dining out and going to the movies are not options. Restaurants and theaters are all closed!
- Control what you can control
This includes your emotions. Binge watching CNN or other news outlets will lead to increased anxiety. News outlets tend to repeat the same information over and over to fill the air time. Often there is no new news for hours or days yet the channels keep broadcasting
- If you are still employed and getting a paycheck great.
If your job is in jeopardy, or you are facing a lay off you understand why we recommend maintaining at least 3 months of expenses in safe holdings.
- Understand the current market is not reflective of the true state of the U.S. economy.
Traders and institutions are acting without guidance from firms. No one knows the true state of the economy. The volatility is feeding on itself. Until there is clear guidance the market averages will continue to bob up and down like a small boat in high seas.
- Stay calm – This too shall pass.
Markets have historically recovered. When will the current market recover? I do not know but we believe it can.
Listen to the Kenny G station and chill. https://www.iheart.com/artist/kenny-g-7789/
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group (PAG), a registered investment advisor. PAG and Thrive Wealth Advisors are separate entities from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.