We want to reach out to all of you about the current circumstances we’re all dealing with in in response to COVID 19.
First, we understand how overwhelming this can be for people.
Second, we want to share our appreciation for the fact that over the past 2 weeks, we’ve received exactly 3 inquiries. Two were triggered by other things that just happened to coincide with the pandemic. The third was from our Tennessee local news outlet, WCYB, requesting an interview that resulted in the video we posted early last week.
While the outlook may seem bleak at the moment, we need to remember the historically robust economy in which we entered this season. This not only bodes well for absorbing the serious blow to the global economy, but also means it could be exponentially better than it might have been. It also means that when the dust does settle, the recovery should be swift and full of furious economic activity.
Picture your work-out trampoline at the gym. Ever been on one with loose springs? Think of what a difference it makes once the trampoline’s springs are tightened and really tuned up! It’s the same way with economic sucker punches.
When we came through the Great Recession of ’08-’09, the economic recovery was mushy at best. But even then, conditions for the market were much better because the bull market thrived on the way up (climbing the proverbial wall of worry). And, when the current economy comes around to its rebound, the market will likely be way ahead of it – pricing in the inevitable and ferocious activity of thousands of businesses, large and small, getting back online.
We’ve ridden this rodeo many times before with personal assets in the throes of powerful market punches. The one thing that has always amazed and gratified us has been the genuine sense of calm our clients have displayed.
Believe it or not, I’m the worrier of our team.
So, when things turn this nasty, my first reaction to quiet phones is that no-one is calling because they’re too panicked to pick up the phone. The reality is, for almost all our clients, that past experience has proven to be very different. So, lack of calls today seems like past is prologue here as well. And, you should take some comfort in that too!
That’s not to say we’re just fine with what’s happening to your account values. We’re not! Remember that our fees fall just as far and as fast as your account values. The difference is that our business runs on your fees! So, we get it, really! Again, we don’t like it but we’ve been here many times before and we’re still here now!
So, what are we doing?
First, we’re recognizing that your accounts were built for just exactly this scenario and that’s really important. You could say we’ve based the viability of our business on it.
Second, for those of you taking regular income from your nest egg, we’re in hyper vigilance mode on where it will count the most – keeping distributions going out the door and into your checking accounts without permanently damaging your savings.
It’s why all your accounts, whether you’re young or older, whether you’re adding to or taking from your savings, whether your risk averse or more aggressive, are built to begin taking income at any time. So even if you need to take income during the worst possible time, you can! And, you should be able to do this without taking permanent losses.
If you’re not one needing this kind of critical attention to your portfolio, then take a deep breath and realize that we’re doing exactly what you’d be doing. Making straight-forward common sense moves, based on our experience and education. It’s just about that simple and it’s this way on purpose.
So, if there’s the smallest chance you’d feel better hearing just exactly what that means for your personal account(s), please pick up the phone and call us. You may reach me 24/7 on my cell phone, which you can get by calling our office during business hours. REALLY. I mean it. Just call.
We’ll keep you posted as we all move through this to other side where the sun will shine back down on us again. We’ll take good care of your money. You take good care of yourself! Stay healthy!