As Americans hunker down at home, converting spare bedrooms, dining rooms and basements into makeshift home offices and classrooms, uncertainty looms large. Nothing is the same as it was a mere two or three weeks ago. March Madness, St. Patrick’s Day parades, and gatherings of all types were unceremoniously cancelled. Restaurants, bars and retail stores closed their doors to foot traffic. And hand sanitizer and toilet paper are worth more than some stock holdings – at least for now. More importantly, people are anxious about their health and the health of family members, especially older adults and those with pre-existing conditions. They’re worried as well about the impact of the pandemic on the economy, their businesses and their 401(k)s.
When it comes to the markets, my colleague Scott Kubie recently wrote, “While there is no way to fully predict what will happen next, it’s important to remember the goals of your investment portfolios. Long-term investments face volatility, and to pursue your long-term goals, it’s vital to not overreact to one day, one week or even one month of market movement.”