This Week’s Blog Is Written By Scott D. Heins, CFP®, IAG Chief Investment Officer
March 25, 2026
NMS
Last week while Wisconsinites were enduring a mid-March blizzard, my family was blessed to be visiting my sister and her family in Phoenix, Arizona.
Phoenix is the opposite of Wisconsin. It is a disorienting place of abundant sunshine, bountiful shades of brown, and limited snowfall potential. However, this year was also full of weather warnings.
When we arrived on Saturday the temperatures were in the mid-90s. Each day the high temperatures slowly ratcheted up throughout the week – reaching 107 degrees by Friday.
All of this unusual spring-time heat motivated the National Weather Service to issue Excessive Heat Warnings on Thursday and Friday. In a blow to my hiking aspirations, the City of Phoenix closes the most popular hiking trails in the area between 8:00 am and 5:00 pm when Excessive Heat Warnings are issued.
The city adopted this closure policy due to the excessive number of emergency trail rescues that had to be launched due to ill-prepared hikers misjudging the dangers that such heat poses.
Naturally, my thoughts turned to how such principles could be applied to help ill-prepared traders avoid excessive financial market stress.
What if we created a National Market Service (NMS) that issued excessive market heat or market cold warnings? During extreme market events such as bubbles or bears, the NMS could proactively warn people of the risks that they may encounter during market volatility.
You know as well as I do that traders would ignore those NMS warnings, just like the motivated hikers who simply switched to less popular hiking trails without a dissuading city employee at the starting point.
As much danger as market extremes pose for ill-prepared and short-sighted traders, well-prepared long-term investors who calmly abide by their rational plans in times of extreme market events tend to do just fine.
When the weather is too hot outside, the prepared drink plenty of water and use air conditioning to keep their bodies cool. When the markets become volatile, the prepared defer to their long-term financial plan and take appropriate actions.
These simple, common sense steps can protect the thoughtful from both weather and market extremes.
If you or someone you care about would like to be prepared for the next market extreme, let one of our caring financial advisors help determine your best plan of action now.
Quote of the week: Daniel Crosby, Ph.D. “I have 10 commandments, if you will; they sort of cover the waterfront for me, if people would do these things: First, in all markets, up down and sideways, you control what matters most. Second, thou shall understand risk. Third, start now, start again tomorrow, and start again the next day. Fourth, trouble is opportunity. Fifth, do less than you think you should. Sixth, forecasting is for weathermen. Seventh, if you’re excited about an investment, it’s probably a bad idea. Eighth, this time isn’t different, and neither are you. Ninth, you should be the benchmark. Tenth, excess is never permanent.”
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principle.
ART: 1083305
Photo Credit: Thalia Perla
