Updates & Historical Returns

They say that the night is darkest right before the dawn.  Perhaps this is a good analogy to our Country’s current fight against COVID-19.  Already there are signs of hope on the horizon (i.e., declining deaths in New York, Italy, and Spain over the weekend; promising progress on several potential viral therapies, vaccines, and antibody treatments; and flattening infection curves in Washington and California).  Today, we saw most stock market indices rise between 7-8.5% on optimism that the worst may soon be behind us.

Market Update and Historical Equity Returns after a Correction of 20% or More

We cannot predict how markets will perform for the rest of the year, but we reiterate our confidence in the resilience of capitalism.  The expected future return for stocks is ALWAYS positive.  The extreme market volatility that we have seen over the past 35 days is likely to be around for a while, but investors do not want to be out of the market on days like today when the DOW rises 1,627 points.

If we look all the way back to 1926, whenever the U.S. stock market corrects 20% or more, the average annualized 5-year return following such a decline has been 11.76%.  We continue to believe that the stock market presents an exceptional long-term value at current prices and we are putting money to work.  Those of you who stay disciplined inside your 457(b) and other retirement/investment accounts will be rewarded if you stay fully invested in the markets through this wild market rollercoaster. 

Virtual Financial Planning

DecisionPoint is offering virtual financial planning meetings via video conferencing to you and your families while we all try to maintain social distancing.  These meetings have been working great and we can collect financial data from you and visually present your financial plan virtually using video conferencing just as effectively as if we were meeting in person. Don't hesitate to reach out if you would like to schedule your virtual financial planning meeting. 

As always, please reach out if we can be of assistance! 

- Your DecisionPoint Financial Planning Team -