Every day, we're bombarded by influencers and financial personalities telling us exactly what to do with our money right now. "Sell everything!" "Buy this sector!" "Prepare for disaster!" “Take Social Security early!” Unfortunately, what drives impressions, views, or likes for a financial media figure might be completely wrong for your specific situation. And I am convinced, after 40 years as a financial advisor, that no one has a reliable crystal ball, despite their exuberance.

Instead of this reactivity, what about creating an investment structure that has a very high probability of faring well over your time horizon for each of your objectives? 

History Has Valuable Lessons to Teach Us

Let's look at what history shows us about staying invested during turbulent times:

• US Markets After 2008: The US stock market took approximately 6 years to recover.  Six years might seem like a long time, but those who sold early missed out on huge gains. Most of us would benefit from shifting to a much longer time perspective with our finances.
• COVID-19 Market Crash: Between February 12 and March 23, 2020, the Dow lost a staggering 37% of its value. Despite this initial panic, the market began to rebound in April 2020 and recovered fully within 8 months—even as pandemic concerns and economic uncertainty persisted. Unfortunately, many financial journalists told their readers to sell during the downturn, only to miss the huge recovery that followed.

One pattern emerges clearly: those who sold when markets began to crash usually missed the subsequent recoveries. The data consistently shows that investors who are patient and avoid emotional decisions typically fare best.

Your Path Forward

Rather than reacting to the current economic uncertainty with fear-based decisions, consider:

• Ensuring that your portfolio aligns with your current circumstances and time horizon.
• Making adjustments based on an objective financial plan - not headlines. Have a general sense of four numbers: Your after-tax income, your spending, your total investment assets, and your total liabilities.
• Meeting with an objective professional, so you make an informed decision. (FYI: I have my own financial advisor, so I don’t react to my own emotional impulses.)