“The only thing we have to fear is fear itself”
The above quote is from Franklin D. Roosevelt and was part of a speech given in 1932. At the time the country was coming out of the great depression.
“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
Many of the same concerns that prevailed in 1932 affect us today with regard to the economy. In addition we have a heightened awareness of terrorists. That is their goal – to create fear. Whether it is ISIL, Hamas or a domestic incident like the Boston Bombings terrorist incidents are seemingly inevitable as is the reaction of markets. We cannot predict what the future holds but strongly believe that a proactive approach to allocating your portfolio is always the best strategy. Those that react after something happens are too late. While we all want to maximize our growth it is important to understand that greater growth potential brings greater potential for volatility. Now is a good time to think about your personal risk tolerance and allocation. If you have any concerns please touch base with your financial advisor. We will also go over this at your next review.
As always we believe you should have enough cash on hand for any short term needs to so that any market fluctuations do not affect you financially. Psychologically, however, it is important that your portfolio meets your risk tolerance so that you can remain invested regardless of short term volatility. We remain optimistic about the outlook for the markets over the next five to ten years but also expect increased volatility in the near term. The most important thing is to stick with your long term plan and not have fear or panic derail it. We are here for you.
Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. Investing involves risk and investors can incur a profit or loss regardless of strategy selected