Mr Market wants you to be scaredSubmitted by Beacon Financial Planning of Cape Cod, Inc. on February 28th, 2020
Friday, February 28th, 2020
Just a friendly reminder that although we have no control over market volatility, we can control how we handle our emotions and avoid letting them drive our financial decisions.
We encourage you to check out the chart enclosed below that shows how markets have powered through past viral outbreaks. After the SARS outbreak in China during 2002-2003, the market bounced back quickly after the virus was contained. As with past outbreaks, markets are expected to power through over the long term.
"It's likely global economic growth will experience a V-shaped recovery characterized by slower growth in the first half and a significant acceleration in the second half of the year. The U.S. economy will probably follow the same course," says Capital Group U.S. economist Jared Franz.
During times of market volatility, it's important to remember this isn't the first time the market has declined and it won't be the last.
Market volatility is a necessary evil and we know past performance is not a promise of future returns, but if history is any indicator, those whom don't react to it are more likely to come out unscathed.
We think you for your continued trust. Please feel free to give us a call if you have any questions.
Your Team at BFPCC