Broker Check

March 2020 Newsletter - A Proud Captain

March 17, 2020

Dear First Mates,

 I hope everyone is safe and staying healthy during these volatile times! Let’s dive right in because I have a lot to discuss with you.

 What To Do Now

  • Hold your existing investments
  • Buy more if you can (and give it to me ideally!)
  • Optimism is the only realism
  • This too shall pass. 

"The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffet

 A lot of money will be made or lost during this panic and I want my first mates to be on the right side of this equation. People are not patient and we are seeing the Buffet quote above play out in real time.

Please spread this advice to your friends, family, and coworkers. For more on Corona, please see my February 2020 newsletter.  

I’m A Proud Captain

I am so proud of all my First Mates. Despite these scary times, not one of you has instructed me to sell and several have been ADDING to their portfolio. And as your captain, I practice what I preach. Since this has all gone on – I have bought 1 Bitcoin, maxed out my Roth for 2020, and intend to add at least $20k to my aggressive model since a real estate investment I owned matured.

 We Are Contrarians

Please look at the attached piece. What we clearly see is that Money Market Funds are peaking now. And when was the last time they peaked? That’s right -  December 2008! Talk about a contrarian indicator for investors to be buying now on the cheap and not following the herd.

 Retirement Income

Remember, our portfolios are designed to last us throughout retirement. Shorter time frames are IRRELEVANT to us. The real risk is running out of money because you invested to “conservatively” i.e. in cash & fixed income securities. Do you want the historical 10% growth of equities or the 5% growth of fixed income?*  There is no way to suppress the down periods of the market without ALSO suppressing the up periods as well. And the market is positive 3 out of 4 years (since 1872 at least).**   

 I’m Here For You

If you need to speak, have questions, or just want some further reassurance – I am here for you. Feel free to call my office at (516) 400-7111, call or text my new cell phone at (516) 699-1776, or email me. The WealthPlan LLC is open for business!


*Source: Calculations by Craig L. Israelsen, Ph.D. US Large Stock is represented by the S&P 500 Index. US Bonds is represented by the Ibbotson (SBBI) US Intermediate Govt Bond Index from 1926‐1975 and the Barclay's Capital Aggregate Bond Index from 1976‐present.
**Source: FactSet, Robert Shiller, 2017