While financial markets continued to fluctuate last week, the majority of the movement was positive. Optimism surrounding the COVID-19 outbreak, including signs of lower infection rates and indications of a “flattening of the curve” led to broad gains. In fact, most major indices posted positive returns for the shortened trading week (markets were closed for the Good Friday holiday.)
While we believe it is certainly too early to call an imminent market recovery, we are cautiously optimistic that the worst may be behind us. Make no mistake, we will continue to see volatility and we will likely test the lows established last month. That’s why it is so important that we stay committed to our investment discipline.
Here’s one example: March 23rd has proven to be the market low point so far. On that single day, over $211 billion dollars were redeemed from mutual funds. News was dark and fear was rampant – there were lots of reasons to get out of the market. However, in the following 3 days (March 24, 25 and 26) the market rebounded 23% from these lows.
A word about account statements: March 31st marked the end to the first quarter and within the next week you will be receiving a copy of your first quarter statement. This statement will likely show a decrease in the value of your investments. Please keep in mind that unless something has changed with your investment time horizon, objectives or risk tolerance, there is no compelling reason to change your investment discipline. We believe that investors who stick with their investment strategy and maintain a diversified portfolio are prepared to weather this current market volatility and poised for our eventual recovery.
Our job as your financial advisers is to manage risk and focus on the future. We take our responsibility to you very seriously and remain committed to providing you the best service and advice possible. You can count on us to monitor your account, evaluate market changes and provide appropriate guidance.
*Past performance is no guarantee of future results. Diversification does not guarantee a profit or protect against a loss.