March 17, 2021 - Published by IAG Wealth Partners

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Opportunity knocks, but that persistent harsh knocking sometimes creates fear instead of joy.

Next week Tuesday, March 23rd, marks the one-year anniversary of the end of a harrowing one-month 34% plunge for the S&P 500 Index – a representative basket of 500 U.S. large companies.

In the week leading up to that low point traders were panicking and flailing about as they tried to comprehend how a global pandemic would impact the economy and individual companies. The S&P 500 Index was down 12% one day, up 6% the next, then down 5% the following day.

Fear gripped traders’ imaginations.

Doubt entered investors’ minds. Some investors converted to traders and opted for the “safety” of cash to permanently lock in their portfolio losses.

Opportunity was knocking, perhaps even pounding. Only a select few were listening with both open ears and open minds.

I will be the first to admit that it is gut-wrenching to watch the value of my portfolio rapidly decline from a high point. I always feel that my accounts should never be lower than their highest peak. That peak value almost becomes an entitlement to me that I yearn to reach again.

After the market painfully inflicts losses on my previously valuable portfolio through no fault of my own, I am far more inclined to get defensive, bemoan my fate, and pout than be alert for long-term opportunities that may be knocking.

Opportunity can knock when we are least-prepared to recognize it.

Opportunity also requires time. Time is the luxury that allows investors to observe the daily flailing of traders from a safe distance without getting emotionally involved. Time builds confidence that this large disruption shall pass before I need to sell my long-term investments to meet my cash flow needs. Time is the secret ingredient of opportunity.

One year ago, we were listening for the knocks of opportunity for our clients. We were proactively rebalancing our clients’ portfolios to their long-term investment risk budget. We were proactively accruing future tax benefits for our clients. We were reassuring our clients that our disciplined Portfolio SegmentationTM process helps put time on their side.

The last twelve months have been filled both with challenges and opportunities. Thank you for choosing IAG Wealth Partners to diligently guide you through both.


Quote of the week: Jeremy Siegel: “Fear has a greater grasp on human action than does the impressive weight of historical evidence.”

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 S&P 500 is an unmanaged index of 500 U.S. large cap stocks. One cannot invest directly in an index.

Past performance is no guarantee of future performance. In fact, the opposite can be true. The information contained in this report does not purport to be a complete description of the securities, markets, or development referred to in this material. Investing involves risk including loss of principal.

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 principal.

This Photo by Unknown Author is licensed under CC BY

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