The last few weeks and especially days, market participants have gotten a little cranky and fearful.
What to Do?
Just like navigating 1998, 2001, and 2007, diversification works. Our appropriate allocation to conservative fixed income and equities served us well during those times and should again this time.
- Markets go down MUCH faster than they go up
- It has been a long time since we have had a serious (10-20%) pullback- almost 6 years
- Anyone not involved in a meaningful way in the capital markets for more than six years may be VERY frightened – Not us, we have been here before
- It would not surprise us to see markets fall another 5-10% OR rally right back
- Economic numbers are ok
- Earnings are ok
- Markets are Frothy as we have said many times- this may be a reversion to more realistic levels
- Capital Markets are the only place where people get less enthused about buying when items go on Sale
Possible Sale items
Not recommendations — Only observations !
Stay cool and have a great Monday!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225