I’m not sure how March ended but April certainly came in like a lion when it comes to the equity markets.  Investors have been shaken by the technology route as well as the possibility of a pending trade war with China.  As we start this week, the Dow Jones Industrial average was off 0.7% last week and from it’s all-time high on January 26th, it’s -10%.  Officially, stocks are in correction territory.  But with the averages so high and the numbers so big, even I have to be reminded of the following:

  1.     Markets go up 3.5 out of 5 years.
  2.     Markets average one 14% drop annually
  3.     Every 5 years or so, markets decline more than 30% (Think BFlex curve here)  See my web page, www.theliberatedinvestor.com/wealth-management.
  4.     Investing in equity investments, over long periods of time, significantly beat inflation.
  5.     Selling low and buying high is a losing strategy.
  6.     Don’t watch the news shows or check your accounts daily.
  7.     Never make decisions based on emotion or fear.

It’s April 9th, only a few days away from when your tax forms need to be filed.  There are extensions, but you do need to pay the bill, even if you get an extension. The attached article, “It’s April…have you filed your tax return yet?” may help any of us late-filers.

I was on the phone the other day and she asked me how I was doing, and I immediately said “fine”.  But I really wasn’t doing fine so I told her how I was doing.  When I saw the article about the 5 Questions, I jumped on it.  Normally, you really don’t get any information by asking and answering in the typical ways.  It did add to my responses and questions, so I hope it helps you as well.

Not sure what this week will bring but it is important to know that the investment strategy employed will, while it’s not guaranteed, protect investments in the event of a sudden, dramatic (-25-30%) decline in equities.  Now all I have to do is go out and listen to my own advice.  Hope you have a super week.

Doug Alden  

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