Broker Check

Market Recap (May 11 2020)

May 11, 2020
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“The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient. Warren Buffett
 
If you’re like us, you’re getting tired: tired of being quarantined at home, tired of continuously adapting to this “new normal”, and tired of the many restrictions to our daily life. 
 
‘Can’t we hurry up and reopen businesses? Can’t we reopen malls and theaters? Can’t we get rid of these masks?’ We are growing anxious to do something and our patience is running thin.
 
We are also tired of a stock market that lately seems to lack direction. Some dark clouds remain on the horizon and we still have an abundance of uncertainty. The urge to do “something” is strong, yet we, as your advisors, urge you to remain patient and stay the course. This too, can be difficult advice to follow.
 
However, just as we know that Social Distancing and a gradual reopening of the economy is the safest and most prudent strategy at this time, we also know that sticking with your investment strategy – and remaining patient – is the best plan for your financial future.
 
We can count on continued market volatility ahead which may indeed test the market lows. But we can also count on the fact that, “American business – and consequently a basket of stocks – is virtually certain to be worth far more in the years ahead.” (another Warren Buffett quote.) 
 
We know the urge to “do something” is strong, but we continue to encourage you to be patient. Your reward is coming!
 
As always, if you have any questions or would like additional information, please don’t hesitate to reach out.