March 12. By Chris Davis. [Commentary] Events are moving so fast, they are almost impossible to anticipate. Whatever I write today is likely to be proven wrong over the next few days and weeks. It does not matter. I am a long-term investor. I refuse to sell out and then say, “The algorithms made me do it.”

You most likely already have a good wealth manager who has constructed your investment plan for times like this. A good wealth manager does not focus on Washington, unless, of course, your name is Mr. or Ms. Washington. You, your goals, and your purpose matter most to them. Washington’s “Tariff Talk” impacts but does not dictate the plan. It does, however, influence the psychology of the market.

Quotable

“In the short term, the market is a voting machine. In the long run, it is a weighing machine.”
—Benjamin Graham.

If you have a good wealth plan, stay the course

A good plan should consider two years of spending in cash so that you never have to sell an investment at a loss to pay bills.

A good plan should have already taken into account your risk tolerance and income needs.

A good plan should be diversified.

A good plan should be constructed and adapted to your purpose, goals, and needs.

A good plan should be agnostic about the markets.

Where is this market bottom?

I’m not pretending to know, but my experience is that market bottoms do not stay long.

In the long run, corporate earnings have historically driven stocks higher. It is still a weighing machine.”

If you are a three-plus year investor, this could be a buying opportunity

As a young man in the late 1970’s I used to watch Wall Street Week, with Louis
Rukeyser.

His favorite guest was legendary Sir John Templeton, who would always say, “Today is the best day ever to invest.”

Davis

Keep the faith. Do not bet against America. Do not bet against capitalism.

And, for 2 cents, I am always willing to be wrong,

—Chris Davis is the founder of Davidson Wealth Management