To All Moore’s Wealth Management Clients: March 12, 2020
We hope that all of you are doing well.
Uncertainty surrounding the spread of the coronavirus (COVID-19) is leading to sharp market corrections. At the same time, oil prices lost nearly 25 percent, on news that Saudi Arabia was dropping crude oil prices and raising production as well. Meanwhile, the 10-year Treasury bond yield touched an all-time low of 0.318 percent during the trading session, as unnerved investors looked for some stability.
Everyone wants to know when this volatility will end and when the markets will recover. While no one can predict if and when markets will recover, it’s important to put this market volatility into context. According to research from Standard & Poor’s, since 1948, the S&P 500 Index has dropped 20% or more about once every six years. In other words, market declines are a normal part of the investment cycle.
As we stated in our February 28th update, our philosophy as a firm is risk management first and foremost. Please know that while the media is discussing the major indexes and their performance, the market is much broader than this which has allowed us to diversify your accounts to reduce risk and exposure. Most of you enjoy the safety on the fixed side which has dramatically reduced your overall exposure. Our diversified approach is designed to provide protection to help in times like this. These accounts are not affected by the recent market volatility, as they are all principal protected. This helps balance the overall risk and smooth volatility across your portfolio. We will continue to pay close attention to market developments in the coming days and weeks.
Thank you for your continued trust and loyalty.
Advisors of Moore’s Wealth Advisory