Watershed portfolios are all-weather, resilient, and built for volatility like we are experiencing. We’ve capitalized on the growth, rebalanced multiple times this year taking chips off the table and positioned portfolios for tougher markets in the late summer. One or two bad days do not make a year.
Headlines are short-term, your plan is long term. We will take the opportunities presented during this correction, but we do stay consistent in our management process.
A few items to address for context:
Japan’s Nikkea was down 12% today. Your exposure is minimal so one country’s loss is not moving the needle.
Unemployment is at 4.3%. While the economy is showing signs of weakness, we are still growing, and corporate earnings have been mostly positive.
The Fed is ready to start rate cuts which can help stimulate markets.
When you see headlines lead with sensationalized adjectives like crashing, plummeting, bleeding or any other to elicit a scary response, block it out. Trust that the plan and strategies you employ have you in a good position.
Volatility is normal, and over the long term, investors with a plan, diversification and patience have always been rewarded. Losses are normal, even when markets do well.
Interesting stat: Nearly 45% of the time when the stock market has been up 10% or more, there has been a correction of 10% or worse on the path to those gains. Setbacks and volatility are part of the game.
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