Currents Fall 2019

A NOTE FROM JILL

Periods of market volatility like those experienced over the past few months can cause investors to question their commitment to the markets. A decline of more than 6% in most major market indices off of all time highs, like that experienced in July, certainly has the effect of muting the “feel good” factor that more stable markets invite. Couple this with inter- and even intra-day highs and lows largely precipitated by geopolitical brinkmanship, and the unsettled feelings can become magnified with every news flash or fresh Tweet.

In times like these it is gratifying to recognize how confident our clients are in our investment process, discipline, and in their individual financial plans. While some who follow the markets call to get our sense of the “noise” versus the reality, many simply take to heart the fact that market volatility is a part of investing, and that we have taken steps to position their portfolios for precisely such events.

One of our fundamental jobs is to ensure that we get the target asset allocation – the percentage of stocks, bonds, and alternative assets – right in light of our individual client’s risk tolerance, time horizon, cash needs and goals. We often have conversations about market declines to the tune of “if the stock market declines by X% and your portfolio is down $X could you still sleep at night?” to test the emotional pulse of clients. This is just as important to meeting goals as ensuring that the economics work. Without the willingness to stay the course, and to remain invested through market cycles, the ability to meet goals becomes increasingly compromised.

Jill Fopiano
President

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