Since the face-ripping rally from spring of 2020, it seems like we've been bracing for an overdue market pullback. 2021 offered a brief 5% dip which never materialized into anything more, despite pundits calling for “the crash of the century” on a weekly basis.

This, of course, is nothing new; we’ve been getting asked how much longer this bull market could go on for nearly a decade.

There have been some significant economic and global instigators in the recent weeks – inflation, mid-term elections, supply chain strains, the Ukraine/Russia conflict, and the seemingly never-ending COVID disruption. Losses have begun to (finally) invade the stock market. Is this the beginning of the end?

Let’s zoom out: The markets have entered a correction. Reread that word, correction.

Life has its cycles, as do the economy and the financial markets. When it comes to market cycles, emotions often get in our way. Strong feelings usually cloud our judgments and steer us toward financial decisions that may not support our long-term goals. We’ve known several investors who’ve let a short-term event derail their long-term portfolio returns - it’s a club with too many members that nobody ever sets out to join.

Markets go up and down based on the Short Term which includes (but not limited to); daily news, earnings, optimism, social media, fear, the fed policies, etc. If we have faith that the world is going to continue, then we (by default) must believe the companies that provide our daily products, services, and entertainment will endure. And we will invest for that Long-Term belief accordingly.

Let's remember that this is not the first time we’ve had high inflation. This is not the first time in the last 20 years that Putin/Russia has invaded or threatened other countries (See also: Crimea in 2014 and Georgia in 2008).

Had you had 20/20 vision during those events, would you have abandoned your investment plan, or, would you have rather taken advantage of discounted prices during the tough headlines?

We purposefully start our client relationships by creating or defining an investment plan and putting it in writing. We anticipated volatility in the new year and made some adjustments (check out our latest video for more information) for those clients who are beginning to spend their savings. For those who are still savings, now is no time to interrupt your investment process.

We encourage you to spend less time watching the market news and checking your daily balances. It’s ok to know what’s going on in the world, but feeding your fears is not healthy. Four of the most powerful words are “This Too Shall Pass”. Try refocusing:

 “To combat the effects of fear, take time to focus on things in your life that make you feel grateful. Science shows that gratitude increases patience.” - DeSteno

If you are getting nervous or just want to talk through your fears, our team is here for you.