Jimmy has been a wonderful client for years. He has two other managers but is probably going to combine all his investment accounts as he approaches retirement. Market volatility scares him, however, he has never wanted to reduce his equity exposure.
March of 2020 proved different when the Covid-19 pandemic hit, rattling markets across the globe. One of his other managers suggested he move to 70% bonds and 30% money market funds. Forwarding this in an email and explicitly asking what Silvia McColl’s plan was for this downturn, it was clear that Jimmy was scared. He was three years out from retirement and his goal was to make sure he and his wife can live the lifestyle they want in retirement, traveling being a must. Silvia McColl held firm to their disciplined investment approach. We do not try to time the markets and are against it. This is how clients get into trouble because if they sell at the bottom, they have no plan for getting back into the market.
Often times, we will see people jump back in after a market rally. To sell low and buy high is detrimental to an investment portfolio and financial plan. We reiterated this to Jimmy, settling him a bit and trusting that our combined decades of experience would prove effective. The market rallied from its low point fast, producing one of the best quarters in market history. Jimmy is pleased, and he is now open to talking about bringing his other accounts over.