News & Insights

  • Staying Invested Through Difficult Times

    February 2020

    As an investor it can be difficult to keep up with all of the headlines pointing to the latest news that is moving the markets. From October 2019 through January 2020, the S&P 500 rallied nearly 10% with very little volatility. Today, heightened concerns over the severity of the Coronavirus along with uncertainty around who will be representing Democrats in this year’s Presidential Election have jolted markets leaving investors to wonder if now is the time to sell their stocks.

    In our previous commentaries we have alluded to the fact that investors should remain committed to their long-term investment plans and believe this time is no different. It is impossible to predict with certainty how the markets will behave over short-term time frames.

    As a reminder, over the past five years we have dealt with a number of situations that have each had a meaningful impact on the market. A few of the examples are:

    2015 – Price of Oil Crashed and the U.S. Dollar Spiked
    2016 – Announcement of Brexit
    2017 – The U.S. is hit hard by three separate hurricanes
    2018 – Concerns over a Hawkish Federal Reserve drive stocks down 20%
    2019 – U.S. / China trade dispute

    This drives the point that timing the market with any degree of consistency is impossible. While you may correctly sell investments to avoid a draw down, the real difficulty becomes when to get back into the market as there will always be a reason why the time is not right.

    In addition, the timing issue is exacerbated by the fact that over the past 20 years, six of the ten best days in the market have occurred within two weeks of the ten worst trading days.

    The below chart further illustrates our point:

    The bottom line is that markets are unpredictable and it is most prudent to stay focused on long-term high quality investments. Investors are best served by working with us to create a diversified portfolio that is tailored to specific needs and personal situations. By allocating to different asset classes and risk exposures, we can create an investment portfolio that is likely to successfully navigate the uncertainty.

    The Information Contained In This Document Is Based On Data Received From Third Parties Which We Believe To Be Reliable And Accurate. YorkBridge Wealth Partners, LLC Has Not Independently Verified The Information And Does Not Otherwise Give Any Warranty As To The Truth, Accuracy, Or Completeness Of Such Third Party Data, And It Should Not Be Relied Upon As Such. Any Opinions Expressed Herein Are Our Current Opinions Only. YorkBridge Wealth Partners, LLC Is An SEC Registered Investment Adviser Under The Investment Advisers Act Of 1904 (“Advisers Act”). Registration Of An Investment Advisor Does Not Imply Any Specific Level Of Skill Or Training. The Information Contained In This Document Is To Assist With General Planning. Please Consult With Your Own Tax Advisor And Attorney For More Specific Information.
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