On March 27 the U.S. Governement passed the CARES Act to offer relief for Americans impacted by this fallout. The following link offers a free summary of this Act as it pertains to your financial well-being. https://mailchi.mp/soundmarkwealth/caresact
Remember, bear markets in common stocks are inevitable.
In the short run, stock markets are irrational, driven largely by the emotions of investors, because it is investors who set the price of stocks, not the underlying companies.
Fortunately, over the longer term, markets are highly efficient, reflecting the productivity and profitability of companies and employees.
As our global community sets out to find a new normal in both the health and economic arena, instead of trying to navigate the stock markets next 25% move, use this time to create a new normal in your portfolio, and more importantly, your life. Coffeehouse Investors focus on three timeless principles.
1. Save for a rainy day (Create a financial plan)
2. Don’t put all your eggs in one basket (diversify based on your need and ability to absorb short term volatility to capture longer term returns in common stocks)
3. There is no such thing as a free lunch. (Maximize returns using low cost index funds and passively managed funds)
These principles have guided Coffeehouse Investors through the bear market of 2000-2002, the financial crisis of 2008, and the 2020 COVID-19 pandemic.
There will be more bear markets down the road. Don’t let bear markets control you. Take charge of your financial destiny – three timeless principles are a good place to start.