We have just passed the one-month mark since the stock market bottom and since that time, stocks initially had a compelling rally off the lows followed by a period of malaise as volatility collapsed and the market now churns sideways.
On behalf of the team at Zynergy Retirement Planning, we hope you, your family, and your loved ones are staying safe and healthy. I don’t think it needs to be said (but I’ll say it anyway) that we are living through extraordinary and unprecedented times. Our thoughts and prayers are with the sick and dying and the health care workers tending to them.
This post, although a brief market recap, is more of a greeting to let you know we are still here if you need us and to give you a few updates on the state of things.
As for the portfolios, we have done nothing since the lows of mid-March. Although unable to predict the future, I am growing more confident that the lows we saw during that time will be the market lows of this crises. It does not mean that volatility is behind us, we should all prepare for more market swings, but I don’t expect we will plunge below the mid-March levels.
We are also no longer making an aggressive call for cash. Unfortunately, the window of panic selling that led to extremely low valuations was relatively short-lived, not much more than a week or so. Many of you were able to take advantage of this opportunity which has proven very profitable. The rest will need to wait for the next opportunity, however, valuations at this level do not justify and aggressive push for additional cash.
Essentially, it is time to do what all great investors do most of the time….nothing. The portfolios have been rebalanced and are all exactly as they should be given the current environment and valuations. There is not much to do in the way of longer-term financial planning until we have more clarity on the fight against the Coronavirus. Essentially, we wait.
Our office remains closed while Lauren, Michela, and I continue to work remotely. Like most businesses, we have no idea when our office will open again but will certainly let you know when we do. Please know that the office number is being forwarded to Michela’s cell phone, so we are still receiving business calls to the office. However, the easiest way to contact us is via our cell phones.
We hope to see all of you again very soon. Until that time, stay safe and take the necessary precautions to ensure your health and the health of your family members. We will all get through this crisis together!
Please call Lauren or me if you would like to talk about your particular situation. We are here if you want to discuss your account, the market, or your financial plan. I am available on my cell at 732-822-9719 or at the office at 732-784-2380 as is Lauren (cell: 732-272-3348). As always, thank you for the faith you have placed in Zynergy.