We know that recent market volatility may have made TUMS a staple of your diet, so we wanted to try to put your mind at ease. That is not to say that the volatility has not gotten our attention, however, I would like to explain to you why we are not panicking.
Here are a few statistics that will hopefully help you to put things into perspective.
Just prior to the outbreak of Coronavirus, aka COVID-19, the highest closing point of the DOW, what most people consider “The Market”, was on February 12, 2020. Since that date we have experienced a pandemic, a change in administration, war in the Ukraine, as well as rising interest rates to combat extraordinary inflation. Think about that for a moment. All of that, and more, has happened since then. Now, where do you think the Dow stands today? Is it up or is it down?
On February 12, 2020, the DOW closed at 29,551. On June 10, 2022, the DOW closed at 31,392. That is a gain of 6.23%1. Do you remember where it was at its lowest point in 2009? On March 9, 2009 it closed at 6,547. No, I did not mistakenly leave out a 1 before the 6, it was 6,547. Why do I remind you of this? I want you remember that although it did not feel like it at the time, we did recover. The markets recovered.
You have heard me talk about rebalancing being an important part of portfolio management. This is why. When we rebalance or adjust the asset class weightings, we are capturing the gains on growth within the positions. This helps keep a check on risk levels.
With all that said, please call us if you want to talk or get some more reassurance. You may also schedule a quick call or full review by using the link below. If I do not have available the specific date or time that you are looking for, then please schedule something with Tom. I have a capable team available to you to address your questions or concerns. Do not hesitate to call us. We are here for you.
To schedule a call or meeting online:
Kami – https://calendly.com/kami_zwm
Tom – https://calendly.com/tom_zwm
1 https://finance.yahoo.com/