STAY THE COURSE

March 19, 2020

 

 

  Sometimes in a crisis situation we can forget why we ever chose to do something – an investment in a diversified portfolio of stocks during the Covid-19 pandemic could be one of those moments.  We are big believers in the benefits of owning stock in a well-diversified basket of stocks.  We are equally aware and understand that stock investments do not always generate positive returns, be that on a daily, weekly, monthly or annual basis.  However, when time is added to the investing equation, the results are almost always very attractive. 

 

 

   The above chart compares an investment in a savings account vs. an investment in an Exchange Traded Fund (ETF) with the symbol of SPY – a basket of 500 stocks designed to follow the S&P 500 index beginning in the great recession of 2008.  While each investing crisis is different than the one before, historically, the ability to ride out the storm and stay the course has proved to be a rewarding investment experience.

We intend to stay the course – We are highly confident we will be rewarded for that decision.

 

 

**The return numbers for the SPY assume the dividend is reinvested and are net of the expense ratio charged by the fund, but do not include any advisory management fees. 

 

 

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