COVID 19 – New Market Era?

Michelle Bertram and Beverly Bertram are financial advisors living in Mineral Point WI and serving the surrounding communities. Michelle Bertram does financial planning for retirees along with business consulting. Beverly Bertram specializes in retirement planning and income planning for her clients. Michelle Bertram and Beverly Bertram are authors of the book, Creating You DREAM Retirement and creators of the DREAM Retirement Process. Serving Madison WI, Verona WI, Mount Horeb WI, Barneveld WI, Dodgeville WI, Dubuque IA, Platteville WI, Lancaster WI, Cuba City WI, Fennimore WI, Darlington WI, Monroe WI, Spring Green WI, Black Earth WI and beyond

Common Portfolio Wisdom ~ “WE’RE IN A NEW ERA… OLD MARKET RULES DON’T APPLY”

Pros –

Many new factors: Internet, Baby Boomers, Global Markets, COVID 19

Cons –

The appearance that we are smarter or this has never happened. Factors change; results consistent. Society may change, but human nature doesn’t.

Axiom –

We are never in a new era. Market action is a reflection of human reaction. Human nature is the constant in the equation.

As you are well aware, the coronavirus has been causing fear to be high and raging havoc in the stock market. This adds increase challenges for many households, especially the baby boomers. We have received many calls with questions and concerns.

Both rash changes or doing nothing could create devastating consequences to your future, especially for the baby boomer generation, those who are in or near retirement. The key to investment positioning is avoiding big loses and being in harmony with all other areas.

We must overcome generational bias. That is, every generation thinks they are smarter than the last. When it comes to the market, we think that it will be different this time… that has been thought for years from the roaring 20s to the 90s tech boom to now… The market goes up and comes down, it will, and it must, it is the when and how that differs.

The truth is, we are heading into a normal market, but a normal market can be scary! A normal market has both bears and bulls, ups and downs. We have been on this upward climb for so long that sometimes we seem to forget that what goes up, must come down.

However, that doesn’t mean you should just be ok with losses. Warren Buffett once said it this way, “Invest in such a way that whether the markets go up, down or sideways you are ok.” He also put it this way, “You know who is swimming naked when the tide goes out.”

Everything looks great when the market is on a bull run when the tide is in, but when the bear comes and the tide goes out, it is when you find out if your protected (clothed) or swimming naked.

We are offering everyone a 15-minute call to talk about the three trends we are seeing, with the stock market and otherwise, that could affect your retirement. There is no cost to this, it is what we can do as our part and whether there is a next step for us together or not, we promise you will walk away from that call with some simple action items for yourself.

Go to www.CreatingYourDreamRetirement.com or call 608-987-1511.

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