Good Perspective

Some of the best advice during times of stock market uncertainty can be to turn off CNBC and ignore the financial section of your newspaper for a while.  That is, of course, if you’ve planned ahead and set up your portfolio to withstand the markets’s ups and downs.

Still, even with the TV turned off and the newspaper in the recycling bin, it’s nearly impossible not to hear bits and pieces of news about the volatility in the stock market.  Kind of like when you’ve recorded last night’s game to watch tonight and you’re walking around town covering your ears and making loud noises anytime someone even comes close to mentioning the score.

When we hear that the market is experiencing a period of volatility our emotions can cause us to feel as if our own investment experience is synonymous with that of the stock market in general. Just remember that in order to experience those same results, your portfolio would need to consist solely of stocks.  I can count on one hand the number of people I know that only own stocks.  If you’ve done the work ahead of time to remove the unnecessary risk from your portfolio your experience is probably more similar to that of a balanced portfolio (53% U.S. stock, 7% international stock, 37% U.S. 7 -10 yr Treasuries, 3% cash) which shouldn’t be nearly as volatile as a portfolio that only owns stocks. Why doesn’t the financial media report the day’s trading results based on a balanced portfolio?  The information would be more appropriate for the average investor, and we wouldn’t have to cover our ears when someone mentions the stock market at tonight’s neighborhood cookout.

As always, if you don’t have a plan or need to revisit yours, please give us a call.

Geoff Hall, CFP®, RICP®
[email protected]

For nearly three decades, I’ve had the privilege of guiding families with what we at Beacon call real planning, sensible investing, and meaningful advice—so that money can truly be a blessing, not a burden. I consider it an honor to walk alongside my clients through both the ups and downs of the markets and the seasons of life. At home, I’m grateful for a life full of love and adventure. My wife, Crystal, and I have been married for 13 years, and together we’re raising our two kids, Cooper (11) and Rhodes (9). When I’m not with them, you might find me serving downtown at our church, pushing my limits on a mountain bike, or catching up with a friend over coffee in Raleigh’s Five Points area. Both personally and professionally, I’ve found that the best journeys are built on trust, relationships, and perspective. That’s why I’m passionate about helping families plan wisely and invest intentionally—so they can live generously and focus on what matters most.