The temptation is to say that this time is different and the market won’t recover. The truth is that crises will always look different. If they looked the same, they wouldn’t cause fear and the markets wouldn’t drop.
At times like this, the temptation is to sell and ‘wait for calmer markets’, particularly since this comes so shortly after the 2008 financial crisis. 32 years ago, Warren Buffett wrote an article entitled “You Pay a Very High Price in the Stock Market for a Cheery Consensus”. The gist of the article is this: by the time the outlook has ‘calmed down’, stock markets are too expensive and the recovery has passed. His words are as true today as they were 32 years ago.
We would be glad to discuss re-balancing and/or investing any funds you may have on the sidelines.
Tony & Peter