In 2018 I wrote 12 articles that encouraged investors to take a more cautious approach to investing and have a defensive strategy in place. However, it was not until the 4th quarter that the stock market began its steep decline. The S&P 500 lost about 20% of its value. The FAANGs (Facebook, Apple, Amazon, Netflix and Google) lost over 30% of their collective value. Facebook, Apple and Netflix lost about 40% of their value.
The stock market is changing. From my historical research, longer term downward trends begin much like this. However, no one really knows how low it will go before it hits bottom.
If you do not have a strong defensive strategy in place, I strongly encourage you to consider one. If you have a trusted advisor who has guided you well through the current risk, stay with them. Good ones are hard to find.
If you would like to get another perspective, feel free to give me a call. I may have an approach that makes sense for you, and I am always willing to listen and share some ideas that you may find helpful. In addition, I am happy to discuss 401(k) or 403(b) plan allocations.
Ben Reppond is CEO and Investment Manager of Reppond Investments. He may be contacted at ben@reppondinvestments.com or (406) 871-3321.