Peyton Manning wins the Superbowl and one of the first questions the reporters ask him is whether it is his last game. He calmly responds that he will take the necessary time to reflect on his career and what his future plans will entail. He explains that he wants to carefully consider what his next steps will be as he doesn't want to make an emotional decision. As soon as I heard it I thought, "What a smart thing to do as that is the same thing we preach to our clients."
Consider the last emotional decision you made and I ask, "Was it a good one?" My guess is that it probably wasn't. In fact, if you look back at many of the emotional decisions you made in your life, I would guess that more than 50% were probably not the greatest decisions you've made. The same rule applies to the current decision many are faced with in terms of their investment portfolios and whether to "jump ship and run for cover," now that the global stock markets are in correction mode.
We, as advisors, have been through several of these correction periods and the best counsel we can provide you is to remain calm and stick to your financial game plan. We invest our clients with a long-term asset allocation designed to ride out even these volatile times in the markets. True, no one likes to see the equity markets correct like this but if you remain calm and not allow yourself to make an emotional decision to sell out of equities at an inopportune time, you will likely be rewarded in the long run.
If you have any questions or concerns regarding your portfolio or your long-term portfolio goals, please contact an SWA financial advisor. We are always happy to help.