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Guide to the Markets

We love being an Independent Firm!

This independence goes way beyond ownership and equity shareholders.  The independence allows us greater independence of thought. The world has evolved over the years and today we all have access to financial data and information that can benefit the investment process and management of portfolios.  JP Morgan creates a large quantity of research and financial data through it's investment company that they make available to investment firms like OverShare Advice and Planning, LLC.   Attached is a 71 page guide to the markets that is produced each quarter.

This quarter we encourage you to take moment to pause and review page 14 (screenshot above).  Too often over the years we have seen Financial Advisors gloss-over volatility of stocks (S&P 500 illustrated - U.S. Large Cap Equity) and speak only to long-term averages.  It is absolutely necessary, though, that you as an investor must survive and stay invested during the short term market downturns to have the chance to benefit from long-term averages of positive market returns.

Investment Portfolios can be constructed and designed for you. The portfolios can be diversified and have appropriate asset allocations. As an investor, you must be prepared to withstand the ups and downs of not just your portfolio, but the pieces of your portfolio.

The interesting perspective in this chart above and on page 14 of the guide is that while the RED DOT shows how the market has dipped in each year, the dark GREY BAR shows how the market ended that calendar year.  The dips often disappear to turn into positive performance years. We use these as opportunities to reinvest dividends during the market dips; that means buying at a lower price. We can also balance or re-balance your portfolio during these dips.

Over time, we see opportunities in using the markets natural ups and downs to your advantage.

Work with a Financial Advisor that shows you the data and provides perspective on how to be prepared and well-positioned. We love building Financial Plans and constructing Investment Portfolios for clients that are educated and ready for the future!

Post Author: OverShare Advice and Planning, LLC