FACING UNCERTAINTY

“When everyone else is acting like the sky is falling, it can be helpful to remember a few things.”

- David Booth 

 
How do we as investors stay in the fight with so much uncertainty? The answer is to reflect on our experiences and to enhance them with the perspective of mentors we admire.

Buttonwood Wealth’s investment approach is about implementing the great ideas in finance. These “Ideas” are the culmination of research conducted by notable academics and investors over many decades. These principles guide our decision making in times of prosperity and when things around us feel chaotic.

Reminder 1: Markets don’t always go up. And they rarely stay down. Downturns present opportunities for investors with a long-term focus to purchase companies at a massive discount. At the age of 89, Warren Buffett has seen more as an investor than most of us will see in a lifetime. The video below contains commentary Mr. Buffet gave in this week's CNBC interview on how days like these present incredible opportunities for investors to capitalize on the recovery.

Reminder 2: We’ve adopted cutting edge technology which helps us prepare for all market environments. We encourage you to take advantage of this technology and meet with us to battle test your investment strategy. Market swings rarely disrupt long term planning objectives.

Reminder 3: What makes a good investor? We believe a good investor is someone that can endure when it seems “the sky is falling”. We don’t believe a good investor is someone who happened to buy Amazon stock 10 years ago on a whim. More times than not we find that to be a lucky investor. There is no room for luck in your portfolio. We prefer hard science and a strategy that has been tested throughout market cycles.

Here’s a quick look at how markets performed during past viral outbreaks.

Viral Outbreaks and Markets

We extend our compassion to those impacted by COVID-19 around the world.  We remain optimistic and will work through this together.