If you invest long enough, at some point in time, the world gets turned upside down. Without notice, growth and prosperity can quickly turn to uncertainty and anxiety about the future. I’ve worked within financial markets and the financial advising business for 25 years, and during my career I’ve seen a few events that shook the confidence of investors globally: Long-Term Capital Management in 1998, the European debt crisis in 2011, and our own financial crisis of 2007-2008, among others.
We can now add a global pandemic to the list of potentially derailing moments that have already led some to utter the words:
“Never Be The Same Again…”
“The End of Capitalism As We Know It…”
Despite each of these events being different, they all had the same effect for financial markets: a swift de-risking of assets. Fear in capital markets produce doubt. Doubt leads to trepidation; trepidation eventually leads to panic, which inevitably leads to opportunity. While some events produced opportunity much sooner than others, it’s very hard to identify when a crisis ends and the opportunity begins. The old adage, “no one rings a bell at the bottom,” holds true.
How to Approach Investing During Stressful Times
I have listed a few ideas below that investors may find helpful during stressful times.
A thoughtfully built financial plan, designed to last for decades, will prevail over short-term bumps in the road as time passes by.
How Can I Help You?
If you’re not currently working with an advisor or you’ve lost contact with your current one, Let’s Start A Conversation. Contact me at [email protected] or by calling (615) 469-7348
William Bevins is a Registered Investment Advisor with the SEC. Mr Bevins began his Advising career in 1995 and has spent 18 years as a Professional Equities Trader. Today his firm, Cypress Capital located in downtown Franklin Tn, manages $270 million from Individuals, Small and Medium Size Businesses, Pensions, and Charities.