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The financial press loves to talk about markets like a reality show, but, as advisors, we see the very real impact of a down market. We know you strive to be a good steward of your resources. During a significant downturn, the fortitude needed to keep a stewardship-centered perspective can be difficult to come by. First and foremost, remember that, although we have experienced an exceptionally long period of prosperity, over the last twenty years, we’ve seen bull markets, bear markets, and everything in between.
How can you be the best steward in this period of market weakness? As Matthew 25 lays out, we shouldn’t bury our talents, and, at the same time, we should also prepare for hard times. During this time of higher prices and lower inventory, we encourage everyone to review their finances to keep them in good order.
It is not only important to stay invested to help ensure you accomplish your long-term planning goals; now is also an important time to examine your cash positions (e.g. checking, savings, money markets, etc.). Once you determine that you have enough cash for a month or two of expenses, it is wise to consider that bear markets have provided some of the very best buying opportunities for those with cash available. Investors can take cash that is otherwise “buried” in accounts that have very little opportunity for growth and deploy it with more buying power than it has had in last nine months. For example, if your money would have purchased 100 shares of a stock in November 2021, you can now likely buy 125 shares. That represents a bigger portion of the company you are invested in and, upon recovery, a larger portion gained.
This opportunity can look different given your specific circumstances, and the Ambassador team is here to help. As active investors, we are always looking for opportunities, and our team is ready to talk about opportunities we see in the market. When the markets recover, whether that’s in a month or a year, you will be happy you put your talents to work in this unique buying opportunity.
Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.