The Prudent Retiree - What's Going on Part XIX
The last four months have arguably been the most volatile period in market history. The market fell 34% from February 29th to March 23rd. It then turned on a dime and has risen 40% since. Wow. Nerve racking, but if you went to sleep on New Year’s Day and just woke up, you are right where you started. That is after the market was up more than 25% in 2019. A solid return by any measure. The extreme volatility due to COVID-19 and the shut down of the economy was just short of terrifying. Truly a market where there was nowhere to run and nowhere to hide.
Martha and The Vandellas were a Motown supergroup with a string of big hits in the 1960s and 70s. Many ladies of a certain age mimicked and danced to their songs. I know my sisters did. They were enshrined in the Rock and Roll Hall of Fame in 1995.
Our risk management model remains positive and we believe investors should maintain their current allocations. We use our process because we want to help our clients avoid large losses from which they can’t recover. Sometimes risk management means getting out of the market as we’ve recommended on occasion. Other times, it means maintaining allocations and staying in the market. That has been our position during this year’s volatility. Nothing is perfect, but we’ve helped our clients avoid crippling losses. It is gratifying to do reviews with clients of 20-30 years and even longer. They’ve enjoyed their income and still have their money to eventually pass on to loved ones. We’ve done our job.
Martha is right—there is nowhere to run and nowhere to hide in the market. We also have nowhere to run or hide when we manage your investments. The score is tallied every day. Ups and downs will continue, but the rest of your life is a long game. That is the one we want to help you win.
Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement.
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Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 – www.horsemangroup.com
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.