This article was created by Lincoln Financial Securities Corporation for use by Don Garton.
As you review your recent statements, which reflect the volatility of the past year’s markets, I encourage you to keep in mind that short-term events should not alter your long-term investment goals. I also want you to know that I share your disappointment with the markets performance.
It is important to maintain realistic expectations based on the market’s historical performance rather than the unprecedented returns of the recent bull market. Investors who have experienced a sustained market downturn know the value of maintaining a long term approach and of staying invested even through times of market declines in order to benefit from market rebounds.
Looking back at the history of the stock markets, a correction should be no surprise. If you stay in the market long enough, you will most likely see more. For long-term investors, these corrections can be an opportunity to make additional investment at reduced prices.
Despite the litany of bad news, there are reasons for optimism for today’s investors:
Economic and investment fundamentals remain sound. Inflation concerns are minimal at the present time. The United States continues to host the world’s most productive workforce with innovative companies leading the way. The Federal Reserve Board has taken proactive stance in preventing further deterioration in the economy by reducing interest rates that may help fuel a pick-up in business and the markets. Washington has provided additional economic stimulus in the form of tax relief.
What should you do now?
Here are areas I will be happy to review with you:
Make sure your portfolio is diversified.
Markets change. Economic conditions change. And no single investment approach will excel in every economic situation.
Know your risk tolerance
Recent market volatility has served as a pointed reminder that investing involves risk. Your investments should be reviewed to make sure you are not taking on more risk than you want
Remember your time horizon Don’t let today’s headlines distract you from your goals. As long as your long-term objectives have not changed, you need not be unduly concerned about day-to-day fluctuations in the market.
Please call my office at (502) 212-3000 to set up an appointment for a thorough review of your investment program.
Any discussion pertaining to taxes in this communication (including attachments) may be part of a promotion or marketing effort. As provided for in government regulations, advice(if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
