The following are the types of things we have been discussing during client meetings and we wanted to share them with you.

Here are six things for you to remember during periods of market volatility.

We must remember…

1 VOLATILITY IS NORMAL
This is what markets do. There is nothing different or unusual about this year’s volatility.
2 VOLATILITY IS EXPECTED

 

Remember, we expected there to be volatile times when we met and discussed the concept of risk and return and jointly constructed your portfolio.

 

3 DIVERSIFICATION MEANS SOMETHING IN YOUR PORTFOLIO WILL PERFORM POORLY

Today, it’s Master Limited Partnerships, commodities, and emerging markets. But this hasn’t always been the case in the past and it won’t always be the case in the future.

There is no crystal ball, so it’s prudent to own lots of different assets that move independently of one another.

4 THERE IS A DISTINCT DIFFERENCE BETWEEN DECLINE AND LOSS

We must remember as investors we control whether or not to turn a decline into a loss by selling an asset. As it stands right now, we have not lost anything!

5 WE PLANNED FOR THIS

Your portfolio was constructed so near-term spending needs could be funded by cash and/or bonds in times of market stress.

If there is a need for cash for living expenses, you have a high-quality bond portfolio or cash to draw upon for spending needs.

6 BEHAVIORAL COACHING IS #1

Vanguard performed a study which determined that Behavioral Coaching could be the most important service an adviser can provide its client.1 Why? Because helping clients take emotion out of investment behavior is the best way to help prevent the fatal financial mistake.

We of course know how to behave during volatile times and continue to invest with discipline, courage, and conviction.

Also please note our 2016 Tax Reference sheet is now available. You may download to the right.

 

As always, if you have any questions, please do not hesitate to contact us directly.

2016_Synergy WP Tax Reference Sheet
Click to Download