Market volatility has been the unfortunate reality most of 2022. As the economy grapples with inflation and higher interest rates, significant drops in equities and bonds this year have been difficult to stomach.

Here are a few reminders:

• You are a long-term, goal-focused, plan-driven investor. Revisit your financial goals and the actionable steps you are taking to reach those goals.
• You own a diversified portfolio of superior companies. Review the companies you are invested in your portfolio. These companies have demonstrated the ability to increase earnings (and in most cases dividends) over time, thus supporting increases in their value.
• Review your portfolio for rebalancing and tax-loss harvesting opportunities. Windward is reviewing your managed account(s) on a weekly basis.
• Pay down debt. When returns in the stock and bond markets are poor, one way to boost your personal return is to pay down interest-bearing debts. Interest saved is interest earned.
• Do not react to current events, no matter how distressing they may be. After 30 plus months of chaos—the pandemic in its several variants, the election that would not end, roaring inflation, the supply chain mess, war in Europe and so on—we’re all understandably exhausted. When the impulse to capitulate—to get to the “safety” of cash—becomes strongest, that’s when the impulse must be resisted most strongly.
• Talk to your financial advisor. We’re here to talk all this through with you at any time, whether you are already a client or you are looking for a trusted wealth manager

We are here to help and you are not alone. If you would like to set up a call with your wealth management team or are interested in working with Windward, click here.

 

This content is provided by Windward Private Wealth Management Inc. (“Windward” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this blog is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in the individual blog posts will be derived from sources that Windward believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.

Windward is an SEC registered investment adviser. The Firm may only provide services in those states in which it is notice filed or qualifies for a corresponding exemption from such requirements. For information about Windward’s registration status and business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.