As you no doubt are aware, the market has experienced significant volatility in recent days.
We would like to provide you with our perspective on what the market correction means for your investment portfolio. As always, it’s helpful to take a step back and start with some longer-term perspective.
We are currently in the sixth year of a powerful bull market. Historically, lengthy bull markets include corrections, and that’s exactly what is unfolding now. Corrections such as the current one are widely seen as healthy because they can “right-size” stocks whose prices have risen too far above levels warranted by their fundamental strength.
Short-term dips in the market are generally only worrisome for stock speculators—those who bet on stocks’ direction within a tight timeframe. For long-term investors, the biggest risk is letting our emotions get the better of us and taking impulsive action.
At Steel Peak Wealth Management, our long-term portfolios are built to withstand market corrections and even lengthy bear markets. Your custom portfolio has you right where you need to be based on your goals, risk tolerance and time horizon.
From a broader perspective, nothing that has happened in the past several days has changed capitalism. In our free-enterprise system, investors have always accepted short-term volatility in exchange for the promise of longer-term gains. Even though the headlines may be discomfiting right now, we believe that we will eventually look back on this period as a routine correction.
In the meantime, rest assured that the Steel Peak team is monitoring the market and providing sound oversight of your investments. In some cases, we are looking for attractive buying opportunities that fit within overall portfolio strategies. In others, we are spotting opportunities to tax-loss harvesting that may lower our clients’ tax liabilities for this year.
Overall, we remain patient, disciplined and confident. Please do not hesitate to contact us if you would like to discuss your investments in greater detail.