We realize that the recent activity in the global stock markets, as catalyzed by the self-devaluation of the Chinese currency and the further decline in oil prices, may be unnerving and unsettling to many, particularly at a time when we are trying to enjoy the dog days of summer. You already know that the long held position at Bond & Co. is for our long-term investors to consciously sit tight and ride out potential storms like these rather than to try to time the market, and this time is no different. We have seen this disciplined approach successfully through several market corrections, including the Financial Crisis, where we saw complete recovery in far less time than anyone predicted. Meanwhile, we have also seen how small mistakes and imperfect market timing has resulted in tangible losses that will never be recovered.
In additon to the WSJ article we posted yesterday, we'd also like to share a recent article by Ron Lieber from the New York Times entitled "Advice After Stock Market Drop: Take Some Deep Breaths, and Don’t Do a Thing". It too espouses that the best course of action is to hold steady in times like these so that your long-term financial plans are not derailed by short-term actions.
Most importantly, we encourage all of you to contact us with any concerns or questions you may be experiencing. We are here to support all our clients through both the good times and the challenging ones.