Dow plunges 1175 pts! MORWM update…
Dear Clients and Friends, This is EXACTLY what we’ve been writing about recently. We believed that we were overdue for a temporary fear-based correction long before we see any significant economic inflection further down the road. On January 17th, only 13 trading days ago, we warned our readers that we expected an imminent 10% (possibly 13%) drop in the markets, which would align with the similar fear-based setback that we experienced in early 2016. As of today, we have seen a 7.8-8.5% drop from the equity market high, depending on which index you use. The following message is likely not necessary. However, just to remind our beloved clients that we are standing at attention: this setback is an opportunity, not a problem. Depending on our technical analysis, we will do our very best to buy into this dip. The difficulty herein is that this fall was very rapid, which means that the recovery could be just as rapid. If this is the case, our indicators may not react quickly enough, and we may not be able to pounce in time. The last thing we would do is buy into a dip haphazardly and without due diligence. But the real core of the message is this: Do not panic. Corrections are not to be feared, but they must be tolerated. If done with care, they can be very profitable, as any client who has been with our family for some time has experienced many times over. As Mr. Buffett says, “Be fearful when others are greedy, be greedy when others are fearful.” Have a lovely evening. We’ll keep you posted.
Matthew Ramer, AIF® Principal, Financial Advisor MOR Wealth Management, LLC1801 Market Street, Suite 2435 Philadelphia, PA 19103 P: 267.930-8301 | c: 215-694-4784 | f: 267.284.4847 |601 21st Street, Suite 300 Vero Beach, FL 32960 P: 772-453-2810
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