We know when there is global panic, it can’t help but to spill over into our families. We know a lot of people are concerned. While we haven’t had a ton of panicked client calls, (we are proactively dialing out as fast as we can), and our clients tell us repeatedly, “you have trained us well”, we have had a few folks who are nervous about current events. And those few prompted this outreach.
It’s natural to fear the unknown. We are all human. And when “they” yell long enough, and loud enough, that the sky is falling, we all look up! Today, we have several unknowns: the outbreak of a new strain of virus, as well as the extent of it, which cannot be predicted. Nor can we predict the economic impact.
The third unknown is a price war in the production of oil. Some responses to this unknown will be good for us as consumers, in the form of lower gas prices and likely lower interest rates.
But there are a lot of unknowns. Markets hate, and fear, unknowns. Neither you, nor I, or any of the “experts”, have control. The only part of this we can control is how we react to them. In times like these, NOT REACTING is ACTUALLY REACTING.
The last thing we want is for a plan to be derailed by reacting to short term unknowns. Are our portfolios worth less today than two weeks ago when they reached a record high? Yes. Are the businesses you own in your portfolio now worthless? No. Think of the companies you did business with today, even before you got in your car. And then, once you did. And when you reached your destination. Those businesses that we all interact with daily are the types of businesses we own in our portfolios.
We shouldn’t worry about the markets, they’re out of our control. But we should worry about how our friends, family, and clients (really, all the same category) are feeling. And we hope that by reaching out to you in every way possible, we are helping you know the best way to react to something you can’t control, is to not react at all.