We’ve Been Here Before

Posted By Kim Spencer, CFP®, CDFA® on Mar 27, 2020


We’ve Been Here Before

From Kim Spencer, The Nalls Sherbakoff Group, LLC.

Dear friends,

I hope you are all practicing CDC safe guidelines. We’re all working remotely and washing our hands.

As I talk to clients and others about this downturn, several things seem to surface. One is that we’ve been here before. Sir John Templeton, a very wise man, once said that the most dangerous words in the market are ‘it’s different this time’.  Sir John also said that a true investor buys when others are selling. I wish I could tell you when this current market will end, but I can’t. What I can tell you is we are here and available to talk to you about your concerns. If your portfolio is diversified, and your outlook hasn’t changed, stay the course. To back that statement up, here are some numbers (we always have numbers).

When we talk about staying in the market, it’s because no one can call the bottom. So, how do you decide when to get back in? History shows that between January 3, 2000 and December 31, 2019 if you missed just 60 of the best days in the S&P 500, your return was -7.02%.  If you were fully invested, your return was 6.06%. To add to that, 6 of the best 10 days during that time were within 2 weeks of the worst days.

In the 20 years between 1998 and 2018, the S&P 500 return averaged 4.6% per year while the average investor only averaged 1.9%.

These numbers tell us one thing. Choose an investment mix that meets your risk tolerance and then sit tight. Unless something fundamentally changes in your situation, don’t make changes, especially now.
Again, we are here to talk about anything on your mind. Halie is manning the office; you can call and ask her to get a message to us. You can email as well. We will respond as soon as possible.

Thanks as always for the confidence you place in us every day. We don’t take that trust lightly.

Most Sincerely,

The Nalls Sherbakoff Group, LLC

DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal, or tax advice. The Nalls Sherbakoff Group, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of, or reliance on the information. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of The Nalls Sherbakoff Group, LLC. Past performance does not guarantee future results.