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While my message would have been the same if I had published this newsletter last week, the events of the first week of January have only reinforced my belief that we are in for a tough year in the markets, with economic and political uncertainties mounting both here and around the globe.
But all is not lost, and while there will undoubtedly be volatility, we can still have a positive year. For example, the first two days of the market have been as bad or worse than this year seven times since 1978, and five of those years ended positive; four of them - 1980, 1982, 1985 and 1992 - were up more than 10 percent. It will be tougher this time, however, since the year's first week performance was the worst ever posted.
For long-term investors, however, it really doesn't matter how we do in one year, or two years even, as long as they remain invested in the appropriate investment plan. It is your job to make sure that this happens.
Uncertain times are when clients need your rational guidance the most and the time when you can shine. Remember to be proactive in your communications and remain calm in the face of uncertainty. That is the leadership that clients are looking for. If you don't do it, someone else will!
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