Thursday saw the market react to Federal Reserve Chairman Jerome Powell’s speech, with a drop of 1.6% in the S&P 500, the largest single-day drop since March.
The Fed agreed to leave interest rates alone for now but indicated it may still raise rates at least one more time this year, at their November meeting. Investors are also facing headwinds with the United Auto Workers strike continuing into its second week and expanding to more plants. To cap it all off, the House is struggling to pass spending bills, raising the specter of another government shutdown at the end of the month.
All of this may make you want to stick your head in the sand or put all your money into the mattress. It’s important to remember that investing is, by definition, long-term. Unless this strike is going to bankrupt the car manufacturers, the companies will still be making cars and hopefully making money for its shareholders. A government shutdown causes some temporary pain, but then the world goes back to normal. Invest in alignment with your goals and how long you have to achieve them, and then you can put your head in the sand. A regular check-in should be all you need.
Other check-ins are important, too. Regular dental check-ups now can help prevent costly dental work in retirement. Regular cancer screenings may catch something in the early stages, when it’s still treatable. A review every five years with your estate attorney can catch issues with guardians, your executor, or trustees. Touching base with your home and auto insurance agent to be certain you have appropriate coverage, especially if you’ve added on or renovated your home.
Regular maintenance on your vehicles and HVAC can help keep them running smoothly, and potentially extend their lifespan. Your financial advisor should reach out and schedule annual reviews as well. It’s a great opportunity to review your goals and make sure your investments are aligned, confirm beneficiaries, look at the amount of risk you’re taking with your investments, and update your financial plan.
The old adage that an ounce of prevention is worth a pound of cure applies to all of these things. If you’d like an easy way to track it, reach out to us and we’ll send you our check list for financial maintenance.
Your action item this week is to get your flu shot.
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CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.