• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

440.974.0808

  • Facebook
  • LinkedIn
  • YouTube

Carver Financial Services

Helping you achieve your personal vision based upon your individual needs, goals and risk tolerance.

  • Our Approach
    • Personal Vision Planning®
    • Wealth Management Services
    • Team Advantage
    • Our Partnership with You
  • About Us
    • Meet the Team
    • Our History
    • Awards & Recognition
    • Randy’s Story
    • Philanthropy
    • About Raymond James
  • Resources
    • Our Videos
    • Client Communications
    • Randy’s Blog
    • Carver in the News
    • Carver Financial ROKU® Channel
    • Seminar Material
    • Client Access Videos
    • FAQs
    • Carver Merch Store
  • Experiences
    • Our Events
    • Client Getaways
  • Contact Us
  • Client Login
  • Our Approach
    • Personal Vision Planning®
    • Wealth Management Services
    • Team Advantage
    • Our Partnership with You
  • About Us
    • Meet the Team
    • Our History
    • Awards & Recognition
    • Randy’s Story
    • Philanthropy
    • About Raymond James
  • Resources
    • Our Videos
    • Client Communications
    • Randy’s Blog
    • Carver in the News
    • Carver Financial ROKU® Channel
    • Seminar Material
    • Client Access Videos
    • FAQs
    • Carver Merch Store
  • Experiences
    • Our Events
    • Client Getaways
  • Contact Us
  • Client Login

Market Correction

We are now experiencing the market correction that has been anticipated and that we have spoken about for the last few years. This dip is neither surprising nor something that is not part of normal market movements. The surprising thing is that it has been almost four years since we experienced such a drop.

Below we discuss a little bit about where we are at. We will also discuss what to do now and what we expect in the longer run.   As always we are aware of what is happening and are here for you. Most importantly our investment approach is a proactive – rather than reactive one and therefore your portfolio has been allocated in anticipation of these types of short term events.   This dip may provide an opportunity to ad to equity positions at attractive prices and also may lead to some very beneficial government policy for the long term. We look at that keeping in mind that there may be an opportunity that many will miss due to media driven fear.

We understand that some people have a fixed income and or portfolio and cannot add to their positions at this time. Market dips present a good opportunity to at least rebalance if not to add to equity positions at attractive prices. The other beneficial outcome is that this may drive government policy that will benefit us in the longer (2 – 5 year) run.   As surely as we have these types of corrections the media, and other fear mongers, will shout that ‘this time it’s different’.  We believe it’s not.  The media will focus on the short term and the negative – we are investing for the rest of our lives and must not fall prey to fear that causes us to hurt our planning.

There are two primary reasons being cited for the market drop. The primary one is China has devalued their currency again in the face of questions about their development model struggling to maintain growth. The second is concerns about the FED raising interest rates in the United States. Today (Monday August 24th) China stocks fell 9% and all Asian markets suffered major losses. Europe’s major indexes opened about 3% down before trimming those losses slightly. The US markets dipped sharply at the opening as well.

What to do now?

First and foremost it is critical not to panic. We cannot say how long the correction will last but we do feel that the sharper the dip the faster the recovery. It is impossible to try and time markets. Getting out and ‘waiting for things to get better’ simply doesn’t work. Aside from the fact that you may miss some or all of the upswing there may be negative tax implications and other expenses involved. You are investing for the rest of your life not just the rest of the year.   Your advisor is here if you have concerns, however, if we feel changes should be made we will proactively contact you.

What happens next? Nobody can say how long or how steep a correction will be and the past does not guarantee the future. We believe that the steeper the dip the quicker the recovery and we also believe that will be the case now. It is interesting to note that there is now more talk that government regulation may be hurting the markets. As we are clearly in an election season we may see regulations and other government red tape reduced that could ultimately fuel accelerated growth for individual companies and markets over the next three to five years.

 

A few other points to remember:

Market corrections are a normal occurrence, it’s been four years since we’ve a 10% downturn (remember Greece in the summer of 2011 which produced a 20% correction in the market) so we’ve gone an unusual amount of time without one.

Market corrections typically happen once a year on average.

Our proactive approach has your portfolio positioned to cover your short-term needs and long-term objectives, so no structural changes are needed to your portfolio unless your needs and objectives have changed

Corrections in the markets may give us the opportunity to rebalance your portfolio and harvest losses to help offset future tax liabilities from interest, dividends and capital gains generated in your portfolio

The average investors returns over the last 20 years (Dalbar Study) is miserable because they tend to sell diversified quality investments when the markets go down, then only to recommit their capital when the price of the investment has risen above the price they sold at – in turn selling low and buying high.  This is why we don’t make significant changes to the portfolio during heightened levels of stress in the markets, our approach is focused on your long-term objectives such as not outliving your savings.

Most of the media’s job is to sell advertising, not spread accurate and unbiased information.  This is why we don’t watch the investment shows, although we read a considerable amount of research from veterans throughout the financial industry which helps refocus on attention to the big picture.

Finally, as a firm we do not believe in market timing and will not support such a strategy.

This will be a frightening time and we are here for you, but we believe this is not any different than any other correction over the last 100 years.   Take advantage of the opportunity and ignore the media.

 

 

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Randy Carver and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Expressions of opinion are as of this date and are subject to change without notice. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Diversification and asset allocation do not ensure a profit or protect against a loss. Holding investments for the long term does not insure a profitable outcome. Investments mentioned may not be suitable for all investors. Past performance is not a guarantee of future results. You should discuss tax matters with the appropriate professional. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability.

Category: BlogTag: Stock Market

Previous Post: « Randy Carver named one of Top 100 Independent Advisors in US by Barron’s Magazine
Next Post: Asking the right questions about the Market and a Correction »

Footer

Let’s Get Started


We’re ready to help you achieve your vision. Contact our team today.

Contact us

OUR APPROACH
ABOUT US
RESOURCES
EXPERIENCES

CONTACT US

OUR OFFICES
7473 Center St.
Mentor, OH 44060
Phone: 440.974.0808
Toll-Free: 800.627.7279
Email: carverfinancialservices@ raymondjames.com

STAY IN TOUCH
         

RECOGNIZED BY
    

         

(Please click here for award criteria & disclosures.)

Securities offered through Raymond James Financial Services, Inc. member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors Inc. and Carver Financial Services Inc. Carver Financial Services is not a registered broker/dealer and is independent of Raymond James Financial Services.

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

Site Footer

Copyright © 2023 · Carver Financial Services, Inc. · Our Privacy Policy · Member FINRA/SIPC