A Bear Market: Why We Don’t Panic, and Neither Should You

The equity markets have been on a wild ride these past couple of weeks, to say the least. One would think it’s almost become a “new normal” to see swings of at least 5% to either the up or the down side on a daily basis. While that’s not quite true, it is indeed true that we’re living in volatile times, with no way to even remotely ascertain what’s to come next.

We can, though, look to the past, and get some perspective. While past results are no indication of future returns, they can be a helpful reminder that nothing — not bull markets, not bear markets — lasts forever. And when you combine that knowledge with a concrete strategy that aims to keep you on track to reach your goals, the future, and the present, may not seem so dark.

On this week’s edition of Lucia Capital Group Weekly, Chairman and CEO Ray Lucia Jr. speaks with our advisor in the Scottsdale/Phoenix area, Chris Lloyd, CFP®, about how this sudden downturn may have affected your portfolio, and why we advocate a defensive-minded strategy.

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The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised by Lucia Capital Group (“LCG”)) will be either suitable or profitable for a client's or prospective client's portfolio, thus, investments may result in a loss of principal. Accordingly, no client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from LCG or from any other investment professional.

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Diversification strategies do not ensure a profit and cannot protect against losses in a declining market.

It is important to keep in mind that investments in fixed income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise and rise in price when interest rates fall), financial (or credit) risk, inflation (or purchasing power) risk and special tax liabilities. Interest may be subject to the alternative minimum tax. Treasury securities are backed by full faith and credit of the U. S. Government but are subject to inflation risk.

S&P 500 Index is an unmanaged index and includes a representative sample of large-cap U.S. companies in leading industries. An investment may not be made directly in an index.

Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Raymond J. Lucia Jr. is chairman of Lucia Capital Group (“LCG”), a registered investment advisor and CEO of its affiliated broker-dealer, Lucia Securities, LLC (“LSL”), member FINRA/SIPC. Advisory services offered through LCG. Securities offered through LSL. Registration with the SEC does not confer any certain level of expertise or training. Chris Lloyd is a registered representative of, and offer securities through, LSL. Chris Lloyd also offers advisory services offered through LCG. Vanguard, American Century and Fidelity are not affiliated with LCG or any of its subsidiaries.

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