The only thing certain in life are taxes, death, and yes… stock market corrections. One of the leading detractors to long-term investment performance is investor panic during temporary moments of stock market stress. The good news is that if we have a reliable investment playbook, we can not only avoid many of these pitfalls, but we can use temporary moments of uncertainty to our long-term advantage. Our goal today is to help you view stock market corrections as moments of exciting opportunity and not short-term panic.
In this week’s market review, we will share our stock market correction playbook and the role that corrections play in maintaining the long-term health of the stock market. We will also review the recent volatility in secular growth leaders, discuss why we think this is happening and then use history as a guide to what may or may not happen next. The panel will also take a look at defensive strategies such as stop-loss selling and how price-based rules may be causing more harm than good. Lastly, we will discuss the rules we follow when selling a stock and then wrap everything up with a credit market health check.
Robert Reaburn: Executive Vice President and Head of Wealth Management at LifePro Asset Management.