We don’t have a crystal ball, but we do have historical data that suggests the second half of February almost always sees a market downturn, particularly in post-election years. We won’t be surprised by it, and we will look for opportunities to buy in the appropriate portfolio models.
It shouldn’t be a long-term trend, so it’s a good opportunity to build your investor muscle. If you’re not an experienced, seasoned investor who stomachs market volatility well, this will be a chance to practice. Watch the downturn and breathe through it. Research historical charts of the S&P 500 spanning the last 10, 50, or 100 years and examine the patterns that emerge. Look at the ups and downs and envision another 10, 50, or 100 years of the same patterns.
Economies evolve, government administrations shift, geopolitical relations change, and industries transform. The market has seen it all before and will see more of it in the future. If your time horizon is long-term and your objective is growth, then a downturn is nothing but an opportunity to buy.
When I anticipate a potential downturn, instead of focusing on the negative, I give myself something positive to focus on—a different area for growth or progress. For the 2nd half of February, I’ll commit to concentrating on my health. I’ll make it a goal to exercise for at least 30 minutes every single day. I’ll maintain a salad bar in my fridge by keeping it stocked with prepped salad bar ingredients, such as roasted vegetables, pickled items, beans, quinoa, chicken breast, hard-boiled eggs, sunflower seeds, salad greens, and a jar of homemade vinaigrette.
Let’s live long, live well, and make the most of February, no matter what it throws at us.
Northshore Wealth Management 