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Investing During the Pandemic, with David B. Armstrong, CFA

Spicer & Co. David B Armstrong

Sean Spicer and co-host Lyndsay Keith welcomed Monument President and Co-Founder David B. Armstrong, CFA to their show Spicer & Co. on Tuesday, March 31st to talk about investing during the pandemic. Dave shared his perspective on how to navigate the current economic uncertainty stemming from the COVID-19 pandemic and protect yourself financially, while speaking to the following points, below.

#1: Determine if you’re an investor or a trader.

As you consume news, particularly statements made on financial news networks, it is important to determine whether you are an investor or a trader. A lot of the information right now that is being disseminated on financial media is geared toward people who are trying to trade stocks. Investors, on the other hand, have long-term plans and goals that guide their investing decisions. If you have goals and objectives that are long term in nature, it’s probably best to not do anything right now with a portfolio unless you need liquidity immediately.

#2: Determine if and when you need liquidity.

If somebody does have an immediate, unforeseen and unplanned liquidity need–meaning they need cash to live off right now–the first thing to do is start looking at portfolios and determining what is the most efficient and effective way to raise that capital.

#3: Consider Tax-Loss Harvesting.

The steep and sudden sell-off in the stock market due to this pandemic likely created some opportunities for tax loss harvesting. Tax loss harvesting is selling stocks that are trading at a loss in someone’s portfolio to take advantage of their tax treatment.

Read this post: Certainty during complex uncertainty

#4: Don’t try to buy the market bottom—invest in the future you.

While it is almost impossible to call a bottom, it is certainly not impossible to identify an opportunity. Rather than trying to assess whether or not we are at a bottom because of the pandemic, individual investors who have some liquidity that want to put some money to work should be looking at the long term and saying to themselves, “Am I trying to buy a bottom? Or am I trying to buy an opportunity because, in my world, a 20% down off the high is an opportunity.”

After being asked about the personal impact of the virus on Monument’s business operations, Armstrong closed by saying, “One of the interesting things about human beings is that we have evolved so well, because we have become adept at solving problems that are right in front of our face, right? We’re not so great at solving problems that are way down the road in advance. But when something is right in our face, we tend to adapt and solve problems very quickly. Whether that’s the coronavirus or work from home situations, it’s been really amazing to see how adaptable everybody in my firm has been.”

 

What’s Next?

How to Invest in the Future You

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A copy of Monument Wealth Management’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Monument Capital Management, LLC [“Monument”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Monument.

Please remember that if you are a Monument client, it remains your responsibility to advise Monument, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Monument is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Monument’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at https://monumentwealthmanagement.com/disclosures/. Please Note: IF you are a Monument client, please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

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