I’m writing this January
21 as the stock market “celebrates” its worst start ever. As often happens when the TV is filled with
this type of bad news, some clients are beginning to call us expressing concern
about their money. This is a natural
emotional reaction, but a reaction we caution you to be careful of.
Let me emphasize, we do
not believe what is happening is a repeat of the 2008 financial crisis, nor
something similar. We do believe we are
going through normal cycles, both market and economic. There are signs the economy is slowing. We may experience a mild recession later this
year. This is normal; we’ve all been
through them in the past. I won’t get
into the economic details in this communique, but call any of us and we’ll be
glad to review the trends and data with you.
We’ve had a long 6-year
run since the last market bottom in early 2009 so it’s probably long-past time
for stocks to back off and regroup. This
is typical, and also expected. While you
will likely see a modest reduction in your portfolio values on your next
statement(s), we don’t want anyone to overreact.
We are confident the money
managers we selected on your behalf will do a good job of protecting your
money.
Be patient, stay the
course and let stock values regain their upward trajectory when the time is
right.
Doug Conoway
Securities offered through American Portfolios Financial Services Inc., Member FINRA and SIPC. Investment advisory services offered through Wealth Management Group, LLC and also American Portfolios Advisors Inc., an SEC Registered Investment Advisor. WMG, APA and American Portfolios Financial Services Inc. are independently owned and operated.
Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.
