Until January 2020, most of us had never heard of the coronavirus (COVID-19). Now, we are not only grappling with the fear of the virus itself, but also its uncertain impact on the global economy and in our daily lives. Most importantly, there is a real human impact and tragedy.  We don’t know how many people are going to fall ill or worse.  Our first thoughts are with those people and their families.  We urge you all to stay safe and take care of yourselves. 

From a market perspective, it is important to remember that while this virus is new, we have had these types of pandemics and other crises in the past and markets have survived them all.  History has shown that eventually the spread of the virus will slow down and people will get back to normalcy, as will the markets. 

Times like these that we are experiencing in the stock market are unnerving, but a normal part of long-term investing.  There are always going to be things we don’t know, and things we can’t predict.

Here is a chart that helps to put market downturns into perspective.  It shows the average frequency of different levels of declines, the average length and the last occurrence:

We understand that periods of market declines can be an emotional time, but it is in exactly these times that a long-term orientation is important. 

With careful and thorough consideration we work together to develop your diversified investment strategy, with your particular asset allocation that is right for you, because every once in a while, these types of stock market declines occur. We do our very best to provide you with a smoother and less volatile experience than the broader markets.  Your investments are grounded in fundamental research and a long-term view of the markets.  Your investment strategy is created to reflect your time horizon, risk tolerance, and goals; we do this collaboratively with you so you can stay the course in times like these.

The best course of action is often to take a deep breath, stay safe, and stay with your long-term investment strategy.  We plan for and anticipate market fluctuations when we design your investment portfolio.  We’ll be paying close attention to market developments in the coming days and weeks.  We will also keep an eye on future opportunities, as the markets move from here to an inevitable recovery.

Please feel free to reach out if you have any questions or concerns. We are here for you.

Sincerely,

Trice & Elizabeth 

Trice C. Rainer, MBA, CFP ® | tricerainer@protectedinvestors.com
Elizabeth Mintzer | emintzer@protectedinvestors.com
Rainer Wealth Management
925-217-4280 | Call · Text · Fax
390 Diablo Road, Suite 202, Danville, CA 94526

These are the opinions of Trice C. Rainer, MBA, CFP® and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC.  Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser.  Cambridge and Protected Investors of America, Rainer Wealth Management are not affiliated.  Registered for Securities in CA, IN, NC, NJ, OH, WA.