Often, God shows the “experts” just how little they know and how poor they are at predicting the future.  Last fall, everyone was concerned about a potential recession. Since then, fears had calmed down and all the “experts” said that there was little to no fear of a recession.  I think that God laughs at us trying to guess what He has planned from the beginning of time. Today, everyone is paying attention to the Coronavirus and gyrations in the oil market. Where will we go from here? Should I be worried? What should I do? These are all normal questions to ask in a situation like this. 

Here’s what you need to know. 

  1. God is still in control. All of the “Crises du jour” have not caught Him off guard or unaware. He will carry us through this as we trust in Him and not solely in our own wisdom and intellect.  Psalm 20:7, “Some trust in chariots and some in horses, but we trust in the name of the LORD our God.” 
  2. We expect that the concerns about the Coronavirus will subside. This crisis should eventually be a distant memory, just like the SARS and Ebola fears of years gone by.   
  3. You’ve been here before. This “unprecedented” news is just like all the other “unprecedented” crises through which you’ve lived. While past performance is no guarantee of future results, the past does provide the basis of what to reasonably expect. You will get through this. 
  4. It’s normal to be afraid of the unknown, but unchecked fear can lead smart people to make unwise, poorly timed moves.  Wholesale changes to your investment strategy solely based upon fear is never a good idea. At Life Financial Group, one of our core values is to never make decisions out of fear and uncertainty.  This helps us to avoid knee-jerk decisions.  
  5. For many of our clients, as noted in the year-end letter, we’ve already taken steps to lower the risk in your portfolios. These moves have worked out very well over the past few weeks.  

Here’s what you need to do.

  1. Doing nothing is often a better choice than to make a move without having all the facts.  Be sure to talk with your Advisor before making any changes to your investment plan. 
  2. Put off discretionary withdrawals from your accounts until the market has a chance to recover if you are able. 
  3. Tighten the belt. If you are able, try to cut out unnecessary spending to reduce the size of monthly withdrawals from your accounts. 
  4. Investors with a long term perspective may want to put some cash to work, buying shares when they are “on-sale”.  We expect this to be a short-lived and tremendous buying opportunity for many.

Thanks for allowing us to walk beside you, even when the markets are acting up.  We are humbled by the knowledge that many of our clients pray for us regularly. You are all such a blessing to us and are the reason we do what we do day in and day out.  

Sincerely,

Roy Russell, Tim Russell, Jeremy Ehst, Mark Magruder, Tony Griepentrog, and Stephen Virkler

 

Securities and Advisory Services offered through GENEOS WEALTH MANAGEMENT, INC. Member FINRA and SIPC

All investing involves risk including the possible loss of principal. Past performance is not a guarantee of future results.