• Jeremy Ellisor

Red Market Days: An Open Letter to Our Clients

On a day like today, I wanted to email you to talk about the importance of being diversified.  As clients of Convergent, please get a good night's rest and know that you are indeed diversified.  Take a look at the chart below:  

The major US market indexes were down between 3 and 4% today. 


However, if we aggregate all of the Convergent Financial Group client portfolios into one, we had a negative day as well, but it was about half the exposure, around 1.4%.









In our last client review, we discussed the possibility of bumpy financial markets as we went through the midterm elections and approached the end of the year.   We believe that you will continue to see market volatility as the bears and the bulls continue to fight.  Most of that conflict is due to two primary things: US trade tensions with China and Possible US Recession.

We believe in advising our clients to take the least amount of risk necessary for them to meet their investment goals.  Please know that your portfolio is diversified.  It is constructed to limit downside risk through the use of eight (8) different sub-asset categories, placing a tilt toward value companies in lieu of growth, through capturing dividend rates, and through the use of short term bonds to dampen volatility.  


Remember 2015-2016. We had two major sell offs: Slowing China GDP and Brexit.


Now look at the graph through today:

The perspective of a few more years makes a difference, right?


I am scheduled to talk to most of you over the next couple of months.  If you need to have a conversation before that, just give me a call or schedule a meeting.



P.S. If you have some extra cash laying around, let me know... I hear the market is having a sale.

CONVERGENT FINANCIAL GROUP

is a Registered Investment Advisor serving clients across the United States. We are proud to have been voted the best or among the best financial planners in Charleston and Mount Pleasant since we first opened our doors.

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