"You Should Have Seen It Coming" and Other Stories We Tell Ourselves

“You should have seen it coming.” “It was obvious and everyone knew it.”

“It was only a matter of time. We were overdue.”

These generic quotes are commonly uttered after stock market downturns, whether major or minor in magnitude.

Hindsight offers perfect 20/20 vision.

The truth is that stock market downturns cannot be predicted accurately.

More money is lost being out of the stock market in an up market than being in the market in a down market.

October has a history of spooky stock markets, but if you sold before October 2017, you would have missed a monthly gain of more than 2%.

January’s inauguration of a new President made some people nervous, but if you would have sold out of stocks, you would have missed a 17%+ gain in 2017 from a globally diversified stock portfolio.

The key to managing stock market volatility is to have enough cash and bonds in your portfolio to meet any withdrawal needs and therefore avoid selling any stocks in a down market. Stock market “paper” losses become real losses only when you sell.

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This is one principle we use in managing your portfolio to help give you increased financial peace of mind.

Turning to local news, we congratulate Donna Ellis on her 20-year anniversary at BFMI! Donna joined us when the firm was only 4 years old. She has been instrumental in serving many long-term client relationships while contributing significantly to the operational and technological aspects of our client service. Congratulations, Donna!

Our firm will be having our first-ever community service day. We will volunteer at the Cincinnati Freestore Foodbank, preparing food packs for schoolchildren. Our office will be closed on Friday, November 10, so we can support this important effort.

We appreciate the opportunity to serve you and look forward to a great future.

As always, please contact us with any questions, news, or comments.