August 27, 2015
Comments about recent stock market volatility

We've all been here before, such as on August 8, 2011 when the Dow fell 635 points only to rebound 430 points the next day.  That was followed by another 520 point dive the following day and an increase of 423 points on August 11, 2011.  Of course, past performance is no guarantee of future results.  However, historical performance does illustrate that we've experienced similar volatility before and eventually recovered.

Markets reward discipline.  Our investment philosophy and our financial plan we've developed with you hasn't changed based on the past few weeks of stock market activity.  We continue to recommend having diversified portfolios using low-cost investment vehicles that take the appropriate amount of risk for your life planning situation.  And if you need funds in the next 1-2 years for your cash flow needs, we suggest having these funds be in cash (or possibly CDs that are FDIC-insured) so that your short-term needs aren't subject to market fluctuations.

It's natural to feel some nervousness about this recent volatility.  I want to share with everyone that no clients have contacted us with concerns about this recent volatility.  Of course we encourage you to check in with us if you have any concerns about anything.  But we think it's positive that our clients are focusing on the long-term.  We're confident that you will be rewarded for this focus in the long-run.

If you have any questions about your portfolio, your financial plan, or anything else, please let us know.

Thank you again for having us be your advisor.