I like to keep in-mind the beginning of Rudyard Kipling’s famous poem ‘If’ as I lead investors through weeks like last week:  “If you can keep your head when all about you are losing theirs and blaming it on you, if you can trust yourself when all men doubt you, but make allowance for their doubting too…”  While certainly no one was blaming last week’s slamming of the global markets on me, emotions ran high in the investment community as the S&P 500 experienced a four-day losing streak to start the month (for the first time since October 2008).  I’ve been watching the markets for over ten years now, and large sell-offs can be a result of emotion and not necessarily economic factors.  Possessing the discipline to “keep your head when all about you are losing theirs,” is the daily practice of a qualified investment advisor.  I don’t live day to day based on emotion or the whims of the investment community at large.  I’ve studied the markets, I know the likely cause/effect of various factors as seen throughout history, and I believe in the strategy I’ve researched and implement daily. 

Whether you have ten thousand or ten million in the market, it is easy to get nervous on poor investment news (especially if you are reading it every day).  However, my clients portfolios are all holding-up based on the investment strategy that I have in place.  Regardless of overall market performance, there are typically still opportunities to capitalize on growth in one sector or another.  This past week was a great example of how important it is to have a diversified and disciplined investment approach.  For example, each day last week that silver dropped (it fell over 25% for the week), I’m sure there were plenty of people ready to jump ship.  However, when you look at the long-term picture, I still see silver reaching close to $50 this year since the fundamentals (i.e., supply/demand, US deficit, inflation, etc.) that have been driving the price up have yet to change.  In addition, silver is still approx. 14% above its 200-day EMA

Currently, all the holdings I have in my clients’ portfolios are above their 200-day EMAs.  If the markets continue to drop, and last week wasn’t just a healthy correction, I will implement my strategy of selling when each investment falls below its 200-day EMA.  This time-tested, disciplined approach helps take the emotion (and fear) out of investment decisions. 


Share the Wealth of Knowledge!
Please share this post with family, friends, or colleagues using the links below. We love being introduced!

If you aren’t sure whether your portfolio is positioned properly for the current market environment based on the amount of risk that you’re comfortable with, we always provide a FREE 2nd Opinion Portfolio Review and would be more than happy to discuss your financial planning goals with you – please click here to schedule your meeting, or give us a call at 913.402.6099.

John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit https://www.chladekwealth.com.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of John P. Chladek, MBA, CFP®, President, Chladek Wealth Management, LLC. Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment Advisory services are offered by Chladek Wealth Management, LLC, a registered investment advisory firm in the State of Kansas. The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of Kansas or where otherwise legally permitted.

Weekly Market Update Disclaimer