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It sure seems that we are reaching out with more market updates this summer than in recent memory. We are all witnessing the increased volatility in the financial markets and it is natural to wonder how this may impact our personal situation. WH Cornerstone remains cautious and continues to monitor market developments, we do not see a need for portfolio adjustments at this time.
We always expect higher long-term returns on stocks than on cash and bonds. Stocks come with greater, "built-in" volatility. We have to accept volatility in times like this in order to earn the expected higher long-term returns. WH Cornerstone takes a strategic, long-term view on asset allocation and your portfolio is invested in a model based on your unique financial and personal circumstances.
The good news is that one does not need a crystal ball to invest with success. The benefits of a long-term strategy are what we seek. Higher returns associated with investing in stocks is dependent on being disciplined through both good and bad times.
Diversification works. While this may not be the case on a day-to-day basis, a mix of different types of assets provides a smoother and more stable ride for your portfolio. Stocks may have performed poorly this past week, but most of our bond funds provided positive returns. The time frame is extremely short, and no one knows how the funds will perform in the next few weeks or months, but it is another testament to the benefits of diversification.
As your financial fiduciaries, we care deeply about you. It is important to stay calm and refrain from making decisions that may be detrimental to your wealth. In the meantime, our team will monitor for rebalancing opportunities that may add value to your portfolio.
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