“Is there anything I should be doing?”
This is one of the most common questions I get from clients during a market downturn.
It’s a natural concern. Headlines in all caps, paired with a constant stream of red numbers and tickers at the bottom of your TV screen, can certainly make it feel like you should take action—any action—to protect your portfolio during these turbulent times.
But here’s the good news: You’ve already made two of the most important decisions you could have in preparation for moments like this:
- You chose to work with a professional team of financial advisors to manage your assets with purpose, especially during times like these.
- Together, we created a plan specifically designed for moments like this—because we knew they were possible!
Some more good news: From 2004 to 2023, the market has experienced several mid-year declines, ranging from a 3% downturn to a 49% drop. Despite these setbacks, many of those years ended with positive returns for the year. In fact, in 17 of the last 20 years, U.S. stocks posted gains by year-end.*
See the chart below for more details.
While we can’t predict exactly what will happen this year—it might not be the same as previous years—there’s still reason to be optimistic as stock investors. Historically, the long-term trajectory of a diversified portfolio has been upward. As long as global capitalism endures, it seems reasonable to expect the same trend.
At Warburton Capital, this is not our first market downturn. In fact, next year marks our 20-year anniversary as a firm. Over that time, we’ve navigated numerous global events that have stressed the markets: the 2008 financial crisis, the Flash Crash of 2010, the European debt crisis of 2011, the Chinese market crash of 2015, the 2018 trade war with China, the COVID-19 dip in 2020, and the 2022 market correction and bond bear market, to name a few. To borrow an Oklahoma expression—“this ain’t our first rodeo.”
Rest assured, we are doing the hard work for you right now. We’ll be monitoring for rebalancing opportunities as this sell-off unfolds, if it continues. If we’ve been gradually increasing your market exposure, we’ll reach out about whether to accelerate that pace as it makes sense to do so.
For taxable accounts, we’ll look for tax loss harvesting opportunities. And if you need anything at all, we’re here for you—just give us a call, shoot us an email, or schedule a meeting. We’re ready to help.
