Yesterday’s news about new worldwide tariffs and the resulting impact on financial markets is going to scare a lot of people. Whether you are someone who looks at your portfolio every day, checks periodically, or hardly ever looks at all, it would not be unusual to have some sort of impulse to take action with your portfolio. The most drastic would be to “go to cash,” presumably re-entering the market “when things get better.”

The issue is always that it will never feel like a good time to get back in. Think back to March 23, 2020…everyone was locked down in their homes, and the impact of COVID had only just begun. Yet despite the fact that people were still wearing masks and maintaining other COVID-related precautions a year + later, that day in March 2020 turned out to be a generational buying opportunity for stocks.

I remember that time vividly, and while a handful of our clients were eager to buy stocks during the market carnage, most conversations involved talking people off the metaphorical ledge.  Investors who sold their positions around then ultimately regretted it, and those who sat tight were rewarded handsomely. You simply cannot recover gains that you miss out on; in fact, we would argue that for funds you have allocated to the stock market for long-term growth, it is riskier to be out of the market when the inevitable rebound happens than it is to temporarily live through a market decline.

Simply put, the volatility stocks experience is the price of admission for superior long-term returns. Furthermore, the best daily returns for the stock market almost always happen amidst overall negative sentiment.

In the meantime, we are actively looking to tax-loss harvest where appropriate and make sure portfolios are positioned properly from both an asset allocation and an asset location standpoint. Market pullbacks can provide opportunities to make incremental improvements to portfolios at little to no tax cost.

As always, we are available if you have any major concerns, or if you simply need to talk things out.

Disclosure:

This article contains general information that is not suitable for everyone. The information contained herein should not be constructed as personalized investment advice. Reading or utilizing this information does not create an advisory relationship. An advisory relationship can be established only after the following two events have been completed (1) our thorough review with you of all the relevant facts pertaining to a potential engagement; and (2) the execution of a Client Advisory Agreement. There is no guarantee that the views and opinions expressed in this article will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.

Strategic Wealth Partners (“SWP”) is d/b/a of, and investment advisory services are offered through, Kovitz Investment Group Partners, LLC (“Kovitz), an investment adviser registered with the United States Securities and Exchange Commission (SEC). SEC registration does not constitute an endorsement of Kovitz by the SEC nor does it indicate that Kovitz has attained a particular level of skill or ability. The brochure is limited to the dissemination of general information pertaining to its investment advisory services, views on the market, and investment philosophy. Any subsequent, direct communication by SWP with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Kovitz Investment Group Partners, LLC, please contact SWP or refer to the Investment Advisor Public Disclosure website (http://www.adviserinfo.sec.gov).

For additional information about SWP, including fees and services, send for Kovitz’s disclosure brochure as set forth on Form ADV from Kovitz using the contact information herein. Please read the disclosure brochure carefully before you invest or send money (http://www.stratwealth.com/legal).