Dear Towerpoint,


Trump. China. Trump. Unemployment. Trump. The economy. Trump. Facebook. Trump. Inflation. Trump. Tariffs. Trump. Russia. Trump. Taxes. Trump. Interest rates.


Short of outright impeachment, the obvious pattern found above is something we are going to need to live with for almost three more years. We say this because:


A. We believe it is extremely reasonable to expect more volatility and more uncertainty than ever before, and


B. Investors almost always tend to view the inevitable shorter-term ups and downs of the financial markets as problematic and worrisome.


Stock market volatility can often tempt us to move money out of the market and "sit on the sidelines" until things "calm down" and become "normal" again. While this approach may give the perception of solving one problem (stopping the bleeding during a down market), it creates several others:

  1. Assuming you made it to the sidelines prior to a correction occurring, when do you then get back in? You have to get it right twice.
  2. When does the rebound occur, and when it happens, will you know ahead of time and have the courage to get back in beforehand?

Good luck consistently getting this right twice.


The following chart supports our case to expect (and embrace and plan for) market uncertainty and volatility, and not to worry about it:



At Towerpoint Wealth, we fully recognize the behavioral bias to want to "do something" when the financial markets and the headlines get crazy (seemingly on almost a daily basis these days). However, we firmly believe the wiser course of action is to be aware of and recognize our fears and cognitive biases, be disciplined in keeping our emotions in check, and work to remain objective about making financial decisions. As we say on our website:


We work with our clients to objectively construct a disciplined plan and strategy during times of stability, to ensure we do not deviate from it during times of instability.


and


In volatile times, wealth is transferred from those who are fearful to those who are disciplined.


We do live in an uncertain world, but also one that is quite interesting, and the last two weeks have not disappointed:

Lastly, we encourage you to take three or four minutes to review the curated content found below, highlighted by:

  • The just-released March edition of the Towerpoint Wealth monthly market commentary, entitled “Spinning Wheel
  • Photos from our most recent Test Drive a Tesla client appreciation event, held last Thursday at the Tesla dealership in Rocklin
  • Our most recent blog post, Preparing Your Children to be Financially Literate Adults

The world is complicated. We encourage you to call (916-405-9140) email (info@towerpointwealth.com) or Tweet (@twrpointwealth) us with any concerns, questions, or needs you have - we are here for you, and look forward to connecting with, helping, and being a direct, fully independent, and no-strings-attached expert financial resource for each of you.


- Joseph and the Towerpoint Wealth team

 
 
 
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