As Coronavirus fears shook markets last week and led to the steepest (and quickest) stock drop in over a decade, even usually safe investments tumbled. Still no need to panic if you have a well balanced portfolio, stay the course. Here’s why.

Coronavirus precipitated a downturn in the market, causing it to deviate from a decade long “bull-run”. This was an expected downturn, experts knew it was coming, it was just a question of when. Coronavirus was just the trigger. Remember the other side of the coin is that downturns create balance in the over inflated portions of the market along with providing buying opportunities for the savvy investor.

Every investor’s situation is different: age, financial needs, and risk tolerance are all very personal and influential factors in investment decisions. A well-built portfolio is built to sustain fluctuations and recover in time. We realize that everyone has a different time frame in which to ride out market downturns, so as with all things, balance is key. Clients’ portfolios are built to weather these storms until the market reverts to the norm of upward movement.

The market correction was expected. There’s no need to panic or rock the boat unnecessarily. There are many things in the market environment you can’t control, BUT you can control a few things about your portfolio – namely, risk and diversification. With good diversification the impact of a downturn will be minimal, as will risk. Tax efficiency will be enhanced as this is a good opportunity to harvest losses.

Focus on what can be controlled and trust the decisions you made. If you feel your portfolio moved beyond what you are comfortable with in a fluctuating market, or your personal and financial circumstances have changed, then perhaps this is a good time to re-evaluate the construction, diversification, and risk tolerance of your portfolio.

We have some practical advice to share to help you navigate an ever-fluctuating market. Let’s discuss what a reasonable expectation might be, as fundamentals are strong. This market correction could have been ignited by any number of political, global, or economic issues. Instead it was factory shutdowns in China due to the Coronavirus which disrupted global supply chains. Our financial advisors are available for clients 24/7/365, and are happy to offer a portfolio evaluation no matter who your current provider might be. Please call Cory Lyon at TFGFA to set up an appointment at 561-209-1120.

– TFG Financial Advisors

TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.