Intercontinental Media Mentions / In the NewsRead More
Intercontinental Media Mentions / In the News
Charlie Lutz, President of Intercontinental Wealth Advisors, discusses new realities we're all experiencing during this crisis and how Intercontinental has adjusted to continue serving clients fully.
(Below is a transcript of the video for those who’d rather read the message)
Hello, I’m Charlie Lutz, President of Intercontinental Wealth Advisors.
Due to the current realities, all of us at the firm are working from home. Like you, we are taking care to follow the safety guidelines, and trying to deal with the disruptions happening in our lives.
Depending on where you sit in the world, things may feel a little odd from time to time. We hope you are weathering whatever personal storms there are as best you can. Please know that we are here for you, so do not hesitate to reach out if you’d like to have a virtual meeting or quick conversation.
While we are diligently monitoring our clients’ portfolios and financial needs, we recognize that there are many other issues facing people during these challenging times. Therefore, we are sending out a series of emails with information and insights that we hope will be helpful to you and your loved ones.
Please continue to read on for this installment – and watch for future insights to arrive as the days unfold.
Please feel free to share this information with anyone you’d like.
Wishing you good health and a return to normalcy.
When markets are volatile, it’s understandable that many investors become anxious. Given the current situation with the Covid-19 virus, there are all too many things contributing to people’s anxiety levels. At Intercontinental Wealth Advisors (“IWA”), we can’t help with all of them, but we can offer some advice and guidance about understanding and dealing with the stress of portfolio fluctuation.
If, on the other hand, you’ve got nerves of steel, market downturns may be a time to take advantage of lower prices. This is not for the timid, and certainly not something to be done without careful analysis done in conjunction with your IWA Advisor.
Intercontinental’s John Kauth has a metaphor he likes to use to explain behavior bias:
Many people think about the stock market quite differently than they think about other things. For example: You see a pair of shoes you really like that cost $100, but you don’t buy them. The next day, you see them again, and they’re now priced at $80. You're more motivated to want to buy those shoes. Yet if your portfolio's worth $100 today and $80 tomorrow, the tendency is to want to sell the portfolio, not buy more. I think emotion is one of the biggest deterrents of portfolio performance for investors because the tendency is to get out when the market’s going down and not want to get back in until it’s gone back up.
Your team at Intercontinental Wealth Advisors is always here for you. We don’t know how severe this downturn will be, or how long it will last. But we do know that market volatility and moderate to severe corrections are inevitable; we also fully expect they’ll eventually recover and continue upward.
Whatever you’re feeling, whatever questions or concerns you have, we’re here to listen and help you through them.
“Choosing what to ignore – turning off constant market updates, tuning out pundits purveying the latest Armageddon – is critical to maintaining a long-term focus.” – Jason Zweig, The Wall Street Journal
Please don’t hesitate to reach out if you’d like to talk about anything related to your health, wealth and well-being. And if you think that other people in your life could benefit from reading this message, please feel free to pass it on.