Investing During the Coronavirus Storm

Risk

As individuals, we face a myriad of risks every day.  Most of these risks are well known and understood (driving a car, taking a bath, walking through a dark room), and as a result we accept them and do what we can to mitigate them.  However, occasionally we face an unknown risk that we can’t easily quantify or mitigate.  This is the situation that we find ourselves in now as we confront the Coronavirus pandemic and the uncertainties and lifestyle changes surrounding it.

Despite the fear and uncertainty the Coronavirus has caused and is causing us, the longer it goes on, the less it is an unknown.  Even now, we are taking measures to prevent its spread based on information we have gathered from other countries that have already dealt with it.  As Coronavirus and our response to it becomes better understood, our collective attitude toward it will change from one of fear and uncertainty to one of familiarity and courage.  After all, this is not the first unknown risk Americans have faced.

We have faced wars, attacks on American soil, natural disasters, other pandemics, and the list goes on.  History has taught us that we have come through these events not always unscathed, but always stronger for it.  Even this challenge is being faced from the firm footing of the world’s strongest economy and best healthcare facilities.

At Leighton Investment Services (LIS), we prepare for storms by making sure investors have broad diversification and appropriate protections in place.

The Coronavirus Storm

Regarding the stock market response to Coronavirus and the unknowns surrounding it, we know that the market is driven by fear and greed, and we know that uncertainty breeds fear.  As unsettling as the recent market volatility has been, it is important to remember that we have weathered these storms before.  Not only that, but we had been expecting a storm in the markets for some time.  While the reason for our storm – the Coronavirus – was an unknown, the fact that we had a storm was expected.  Markets go in cycles, and we knew the eleven-year bull market couldn’t continue forever.

At Leighton Investment Services (LIS), we prepare for storms by making sure investors have broad diversification and appropriate protections in place.  It’s been said that economists exist to make weather forecasters look respectable.  The point is, we don’t know when a market storm is coming, or when it is going to stop, but we do know that both of those things happen.  The protections you have in place are like an umbrella – you might get sick of lugging that around on a beautiful day, but is sure is nice to have when a storm pops up.

As you weather this storm, we encourage you to stay focused on your goals.  We are confident that there will be better times ahead. The financial professionals at LIS have over 40 years of combined experience helping investors navigate the markets in pursuit of their investment and retirement goals.  We stand ready to engage and assist you through these new opportunities and challenges.  If you haven’t met with one of our advisors before, we would like to offer you a special welcome to give us a call, send us an email, or stop by our office next time you are in the Pella LSB branch.  We look forward to meeting you!

 

Disclosures:

  1. Securities products offered or sold are not insured by the Federal Deposit Insurance Corporation (FDIC) or other deposit insurance.
  2. Securities products offered or sold are not deposits or other obligations of Leighton State Bank and are not guaranteed by Leighton State Bank.
  3. Securities products offered or sold are subject to investment risks including possible loss of principal.
  4. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC.
  5. Advisory Services through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser.
  6. Cambridge and Leighton Investment Services are not affiliated.
  7. Mark Ellingson, Tyler Klyn, and Micky Snieder are Registered Representatives with Cambridge Investment Research, Inc., a FINRA Registered Broker-Dealer. While Cambridge Investment Research, Inc. is registered to sell securities in all 50 United States and the District of Columbia, Mark Ellingson is currently registered to sell securities products in Arkansas, Arizona, California, Colorado, District of Columbia, Florida, Iowa, Illinois, Kansas, Maryland, Montana, Minnesota, Missouri, Nebraska, Ohio, Oregon, South Dakota, Vermont, Washington, and Wisconsin. Tyler Klyn is currently registered to sell securities products in Alaska, Iowa, and Pennsylvania. Micky Snieder is currently registered to sell securities products in Indiana and Iowa.

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