Leading financial advisor Cary Stamp puts the Coronavirus crisis and market decline into perspective, discussing the need for patience and gratitude in getting to the other side.
Hi, I’m Cary Stamp. This is a Principled Wealth Moment. I wanted to address one more time what’s going on during the Coronavirus lockdown.
As we sit at our homes and very few of us in our offices and think about what’s going on, I think that it’s incumbent upon us to give some consideration to the areas of our life that we can be grateful for. And certainly one of the things that I’m grateful for are my clients, my family, my friends and my coworkers.
I told my team a couple of weeks ago that this was going to be the time where we actually more than earn the fees that our clients pay us. When markets are good, everything’s easy. Nobody thinks about anything else. Markets are going up, things are doing well and you think your financial advisor is doing a great job. When things turn sideways, that’s the time when it’s really important to have somebody in your corner that can coach you and guide you through the process.
Our phones for the most part have been quiet. We’ve made a lot of outgoing calls to clients, just to take their temperature and see how they’re doing. I want you to know that we’re always here for you and you can call us at any time. But this is a great time for you and your family to make a list of people and organizations that you should show your gratitude to that are helping us get through this crisis. The health care workers, absolutely. The people that are manning the grocery stores or the ones that are delivering things to our homes. Thank God for all of them.
The markets of the last week were up big after a huge decline. And we saw in one single day a rise of almost 10 percent. That’s the largest single day rise in the markets in any one day since 1933. And if you’re out of the market on days like that, you’ll miss a recovery. So stay put, be calm, be patient. We don’t know when this is going to end, we don’t know how long it’s going to take, but we will recover. We always have. The average or typical recovery takes anywhere between 10 to 18 months. The 2007 recovery took almost four years. This is gonna be a tough time. This is going to be a recession. But the equity markets right now have priced a lot of what’s going on already into the change in price that we’ve seen.
So be patient and stick it out. It always gets a little bit worse before it gets better. If you need some guidance or some reassurance, we’re here to share those thoughts with you. And the one thing that you might even want to do for yourself is don’t check the markets every day. Don’t go online every day to see what your balances are. That’s only going to drive you crazy. Be patient, hug your family and know that we’re here for you when you need us. This is a Principled Wealth Moment, and I’m Cary Stamp.