Anxiety is high. Most of us are nervous – not just about the financial markets and the economy. We worry about our health and the health of our family and friends. Here, we discuss the potential challenges ahead and what we are doing to get through this unique time.

As the global health situation continues to evolve and financial markets respond, we offer an update on what we are doing in the midst of all the uncertainty.

Worries of trade wars and tariffs, Brexit, an inverted yield curve, and tightening monetary policy have given markets jitters in the last year. But now, the fear is the impending global health crisis will be the tipping point. Here, we discuss what we are doing amid the market turmoil.

The coronavirus and Middle East turmoil jolted the markets to start 2020, setting back many Wall Street strategists’ outlooks for the year. While the media is hyper-focused on the spreading coronavirus, we take stock of some the positives in the market and some of the risks. It’s a constant battle to combat the apocalyptic thinking that is embedded in our DNA. That makes coming up with a plan important.

2019 capped off a strong decade in financial markets, as the world continued to recover from the 2008-2009 recession. Advances in technology and the companies who brought us these changes were at the heart of a decade of strong financial gains. One implication is the S&P 500 is now less diversified. We believe it’s important more than ever to diversify beyond large US stocks. The future remains unknowable. It’s more productive to invest in preparation than in prediction.

Balanced portfolios have posted very strong results in 2019. Some pundits have called for the death of the 60/40 portfolio. We think these proclamations are wrong.

Investors remain skeptical of this year’s double digit gains in stocks, as typically defensive sectors of the market lead the way. Strong returns to bonds have driven much of the financial market’s gains this year, leading some to wonder if it is all real.

Many wonder if we will see a repeat of last year’s fourth quarter correction in stocks. While that is unlikely, investors in stocks should always be prepared for an unexpected ten percent drop at any moment.

With less than two months left in 2019, now is the time to think about changes in your life ahead of the calendar-year rollover.

Q3 was choppy for stocks while bonds added to their strong year-to-date gains.

We expect markets will remain volatile. The better you can plan your financial life, the better you can deal with the ups and downs of the financial markets.

August was a volatile month with stocks dipping over 6% from their highs. Bond yields fell sharply as the 30-Year Treasury yield fell below 2% for the first time on record. Taken on the whole, the markets have a dour outlook on the economy.

Escalating trade tensions triggered a sharp pullback in August, giving up July’s gains. Global stocks were up 16.6% YTD as of July 31, and now show 12.1% gains through August 6.  Now is the time to re-evaluate your tolerance for ups and downs in the market. Get a plan, keep it simple, and stay invested. Those who can stick with a long-term plan will continue to be rewarded.

Almost no one predicted the surprisingly strong 2019 year-to-date returns for stocks and bonds. The stock market is currently indifferent about a trade war or recession, while declining long-term bond yields indicate the bond market takes a different view. Most things investors worry about are not really important. What is important are the four “deep risks.”

Stocks retreated in May while bond yields fell to new lows for the year. After several months of optimism for a trade deal, the US and China appear no closer to reaching a deal than they were at the end of last year. With revamped trade tensions at the forefront, global stocks retreated 5.9%.