The cause of the quick and significant decline of worldwide stock markets in early February, 2018 of approximately 10% remains subject to analysis and discussion for some.
The decline may have been caused by many reasons. There may not be a specific reason.
Understanding the exact cause or reasons for the decline is not what is critical, though.
Understanding the cause of the decline may not even really benefit you.
Even if you knew the cause, what could you do with that information? Not much.
Would it change how we manage your portfolio? No.
Would it change how you invest? We doubt it and we hope not.
Why? Because for you to be successful investors, we plan and structure your portfolio in line with your long-term financial goals.
We do not react to current events and sudden market moves by making quick, reactive investment changes, except to rebalance your portfolio according to your written investment policy.
So while we could have a short or long conversation with you about what caused the February decline, we would much prefer to talk with you about the many benefits of our long term, disciplined and diversified investment strategy, which has withstood the test of time.
While we don’t know the specific cause of the February decline, we do know that our solid investment guidance and advice on many other financial matters are worthwhile and can be quite beneficial.
That is a conversation well worth having.