Is everyone having fun navigating what you should and should not do during this pandemic? It seems like there are infinite judgement calls to make as society reopens. My daughter is almost 2 years old. She can’t do social distancing. Knowing that, what children do I let her play with? Do I let her go see her cousins? Should she go hug her grandparents?
Nobody has all the answers, but one thing is clear. You can’t resume any activities without taking some risk of infection. Experts are doing their best to help us quantify risks that we can then use to figure out what works for us. We then consider our ability to risk getting infected (Are you or your loved ones high-risk?) and our willingness to risk that (How important is it for you to eat out?).
This sounds an awful lot like the stock market. You can’t invest without taking risk and expect a reasonable return. It’s just not possible. You should examine your ability to take stock market risk (Do you need to withdraw money soon?) and your willingness to take stock market risk (Can you sleep at night when stocks drop 35%?).
Now is a good time to review your investment plan. This year was a good test of everyone’s willingness to take risk. Stocks have recovered to a point where it’s safe to update your numbers and check on your ability to take risk. You may find that new information will cause you to adjust your portfolio – just like we adjust our behaviors as we get more information about COVID-19.
Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.
About the Author: John O’Connor
John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2020.