We have emphasized the importance of a long term view of investing for as long as we have been in the professional investment business. Recently, our CIO, Gerry Frigon, was quoted in Rocket HQ regarding the importance of "staying the course" during difficult times like we have just experienced in the last few months with the COVID-19 panic.
Frigon was quoted in March 2020 as saying:
"Don't panic and liquidate long-term investments," Frigon says. "This kind of thinking is dangerous, because when the market turns it happens so rapidly, it is shocking. The more the market recovers, the more difficult it becomes emotionally for those who got out to buy back in, often resulting in tremendous losses for those who panic-sold near the lows."
We have stated such things many times in the past, most notably in this post from March 2, 2009, in which we all but begged investors not to "get off the train" during the market rout that was occurring in the wake of the 2008-2009 financial crisis. Remarkably, barely a week later, the bottom was hit on March 9, 2009 and the market exploded forward for the next decade.
The bull market born on March 9, 2009 ended in March 2020 with a massive panic sell-off, exacerbated by the crisis industry's over-hyping and the government's overreaction to the COVID-19 virus.
Since our CIO uttered those words in March 2020, the market averages climbed their way back to almost break even by June 30, 2020, finishing the first half of 2020 down a few percentage points, on average. And our own Core Growth Strategy finished the first half up well over 20% YTD!
How many more times will this have to happen before the average investor realizes the folly of trying to guess what the market is going to do?
Disclosures: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Taylor Frigon Capital Management LLC (“Taylor Frigon”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Taylor Frigon. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Taylor Frigon is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Taylor Frigon’s current written disclosure Brochure discussing our advisory services and fees is available upon request. If you are a Taylor Frigon client, please remember to contact Taylor Frigon, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.
