March 12, 2020

When Markets Give you Lemons…

Confused baffled wife and shocked frustrated husband reading online news about stock market

When the financial markets get volatile, as they have lately, our resolve and patience get tested. You must ask yourself, “Am I glass half full or glass half empty” person? I’m a glass half full kind of guy, and as a financial planner, I say look for the opportunities the market is giving you and seize them. Below are just a few opportunities to consider in your financial planning:

  • Rebalance your portfolio. Rebalancing is the ultimate “buy low/sell high” tool. In order to buy what is down most in your portfolio, you must sell what is high – or at least what has held up better during this pullback. The tax burden may also be lessened. Our financial planners just recently did this at Strong Gaddy Lee Wealth Management Group for our client portfolios, and although we may not have nailed the exact bottom, I am sure it will prove to be a good decision.
  • Refinance your mortgage. Rates have dropped considerably. What if you could refinance that mortgage and shave off some years? Wouldn’t that make your retirement planning a little easier?
  • Buy Buy Buy! Over the years pullbacks like we are experiencing now historically have been good buying opportunities. Clients are always telling me, “I wish I had bought when,” and I bet this will be no different. If you only have a small amount, it can still make a difference. Consider adding to your existing portfolio or even looking at specific sectors that have been beaten down. If you could store all the $1.75 per gallon gasoline we might soon see, wouldn’t you do it? Buying the energy stocks right now would allow you to buy low now and cash in later when prices at the pump increase again.

These are just a few opportunities that may exist as you consider your overall financial plan, and you may have thought of more. We would love to hear what you are thinking. Give us a call if we can help in any way.

The opinions voiced in the material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

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