December 2018 Commentary: Long Term PlanningSubmitted by MidWestOne Investment Services on December 12th, 2018
Here in the Midwest, our weather has improved considerably over these past few weeks. Unfortunately for the Carolinas, we seemed to have sent the snow and junk their direction. Even the slightest snow can slow them down, but a foot of snow shuts them down. The good news for them is it melts quickly. The better news is it is them and not us.
Two pieces for you to review this time. The first is from the Chief Investment Strategist at LPL Research. The whole piece is good, but there is a sentence in the next to last paragraph that hits home for me: “We continue to emphasize the importance of maintaining a long-term plan and avoiding the urge to react strongly to short-term market swings.” The second is a 2019 outlook from Nuveen, a TIAA company. Again, a sentence in the first main paragraph stands out to me: “Market conditions may shift, but our clients’ long-term objectives typically do not.”
2018 has been a roller coaster ride in the stock markets. The fourth quarter has been particularly painful. The volatility we are experiencing, coupled with troubling headlines can cause us to doubt our financial plan. The emotional pain is particularly sharp this time because we haven’t experienced this type of negative volatility for years. But we build long-term financial plans for this very reason; to avoid making emotional decisions based on short-term circumstances. If you have concerns, let’s sit down and talk about your plan. We can discuss the impact of making changes at this point, primarily how those changes would alter your long-term plan. Having a plan doesn’t mean we never make adjustments, but keeping sight of the big picture is important in these turbulent markets. Please let us know how we can help!
Thank you very much for working with us. Have a very happy holiday season!!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.