This Is What You Pay Us For

If you’ve opened a newspaper or kept an eye on the markets lately, you know that the last few weeks have been crazy. Volatility is back, and it’s back with a bang. Currently, we are experiencing what’s called a market correction—a 10% drop from a recent peak.

It’s not fun to watch the markets go on their own personal rollercoaster ride ... but it’s not unusual, either. For that reason, I’d like you to remember two things:

Market corrections are inevitable, temporary, and in some cases, healthy. A correction can even create opportunities for the future, as it opens the door for investors to pick good companies at lower prices.
This is what you pay us for—to hold your hand and help you get through times like these. So with that in mind, I’d like to tell you about a few things we’ve been doing here at Bowers Advisory Group, LLC.

First, we’ve been studying the markets intensely over the past several weeks. As a result, we believe we’ve got a good handle on what’s causing all this market volatility. In this case, we are experiencing a global economic slowdown, some profit taking after the last five good years in US stocks and concern about the Fed taking the punch bowl from the party.

Second, we’ve reviewed your portfolio for any potential problems or signs of weakness. The good news is that we feel your investments remain on solid ground. We’ve invested in good companies, have factored in your goals, risk tolerance, and immediate needs, and ensured that you remain properly diversified. While you may see a decrease in performance in the short term as the markets take time to settle, remember that we’re invested for the long term. The day to day noise of the markets is just that: noise. Our job is to filter out that noise and keep you focused on what’s really important: your long-term goals.

This is what you pay us for—to keep an eye on your investments in an unemotional, unbiased way. Currently, emotions are running very high with many investors. Soon, they will discover what we already know: that acting out of emotion usually means overreacting. And that’s never a good thing.

So here’s how we’re going to act: with patience, ration, and rules. My team and I will continue evaluating both the markets and your portfolio. If we feel the need to recommend any changes, we’ll let you know immediately. Because that’s what you pay us for. It’s in situations like these that we feel we can bring you the most value.

One more thing. I mentioned a moment ago that a lot of investors are acting emotionally—and that primary emotion is fear. If you know anyone who needs a financial advisor, or just needs someone to talk to, please send them our way. Feel free to give them this letter, in fact! And as you do, remember to say:

“This is what I pay them for.”  In the meantime, we’re here for you if you have any questions or concerns. Please feel free to give me a call at 301-791-7910 at any time. I’m always happy to talk to you!