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Market volatility can be hard. We are paying attention and we are here to help.

We also know that sometimes the best way to stay calm is to tune out the chatter. Because of that we don’t want to flood your email with updates during volatility but want you to have the information you want, when you want and need it the most. That’s where this page comes in. Please use it for reference, and know that when we have good, relevant information we will post it here.  To schedule a call to talk about what all of this means for you, click HERE.  

Stock Market Plunge: Have A Plan

March 24, 2020 BY Shanna Tingom, AAMS®

Coronavirus has been plaguing the stock market for weeks pushing the markets to record lows!  Market volatility can lead to some serious stress on the part of new and old investors alike. The..

Have a Plan


Have a plan that’s made for you and your retirement.  Taking on the appropriate amount of risk for your situation can be the most important thing you can plan for.  Proper planning wins the race. Sticking with your plan will allow you to take advantage of the periods when the stock market is down. You'll be able to buy more shares. 

Keep Reinvesting


Dividends and interest tend to keep coming whether the Dow Jones Industrial Average is down or  up on a given day. It's true that there are situations that will lead some companies to cut or suspend their dividends. However, most companies will keep paying out dividends as long as possible because a cut is a sure-fire way to lose investors and see the price of your company's stock drop like a rock. Dividends from stocks and interest from bonds are two of the best ways to deal with volatility. You should keep reinvesting the capital your investments throw off. When the market is down, you'll be able to buy more shares, and this will add to your flow of dividends and interest. By reinvesting during periods of volatility, you'll be able to increase the power of compounding greatly. 

Emotions


Emotions drive short-term moves in the market.  The reason stock market corrections and bear markets are so worrisome to investors is that upside moves are almost always driven by reason and operational earnings expansion in high-quality companies, while plunges are driven by emotions.  These emotions can lead to some wild short-term swings in the stock market, but they're always outweighed over the long run by reason and operational earnings expansion.

Retirement Impact


The impact of this market plunge is different for everyone.  This is why it’s important to have a plan in place that is made for you.  How much risk should you be taking on in retirement?   If your portfolio gets out of balance, it's a good idea to rebalance it in the event of a major market downturn to take advantage of the sale price on stocks. If you have cash sitting on the sidelines, volatility to the down side can be a great time to put that money to work.

Source:  https://www.franklintempleton.com/investor/resources/tools/five-strategies-to-help-deal-with-market-volatility

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I'm worried about this Pandemic...

March 19, 2020 BY Shanna Tingom, AAMS®

...But it has nothing to do my investments!

I’m not afraid of the recent drops in the stock market. All of the major indexes have taken a beating since this started and watching them as closely as I..

I’m not afraid of the recent drops in the stock market. All of the major indexes have taken a beating since this started and watching them as closely as I do has felt like riding the Tornado at Adventureland back home in Iowa. Even so, I’m still very optimistic about the market as a whole in the medium or long term.

I see absolutely no reason to sell right now – especially out of fear or panic. Now is the time to BUY as much as you can. It’s what Warren Buffett is doing, and he’s one of the smartest investors out there. After almost every major pandemic in modern history, as soon as the market recovered, it soared to new heights.   If you want to be kept up-to-date on the market and read the latest data, please subscribe to my new 2020 Market Volatility blog.

Let me also say I’m not afraid of getting COVID-19 or passing it to my immediate family here in AZ.  We’re all healthy and thankfully without underlying conditions. I did cancel a trip to visit my brother in Ohio last weekend. He has asthma and two little children so that didn’t feel smart, even though I can’t tell you how much I was looking forward to seeing them. 

There is one thing that has been worrying me - the impact the Coronavirus is having on small businesses.

So many small businesses and entrepreneurs - from local restaurants to estheticians and plumbers to house painters - were literally put out of business overnight. With no certain end in sight, many won’t survive without massive support or government intervention.

As I was leaving the office yesterday, I stopped to look back at our building.  At 4:30 p.m., every business was dark except mine and Diamondback Physical Therapy. And there was NO therapy going on, just someone sitting at the front desk. Through downtown, on many front doors, I saw the same sign I saw at the Bare Necessity Wax and Spa in my building: “Unfortunately, due to the high risk environment that we impose to both our clients and employees, we have decided as a company to close until April 1st… ”. 

I feel very fortunate that I began offering virtual meetings several years ago and have that as an option. I can work from anywhere. These businesses can’t. They rely on foot traffic and butts in seats, and I’m terrified for them. They are facing really hard decisions that I’m sure weren’t even in their realm of possibility a mere two weeks ago. 

My business will be fine and come out of this stronger.  We had a disaster recovery plan in place and executed it flawlessly. But I’m sad for my fellow entrepreneurs in Gilbert and across the country. 

We need to do what we can to help our small businesses. But what can we do if we can’t set foot in their shops?  Here are a few ideas:

  • Get take-out for dinner from your local restaurant or order it from UBER Eats. (They are waiving delivery fees for all local restaurants!)
  • Go to their website and buy a gift certificate to be used when the pandemic subsides.
  • Promote them on your social media pages and ask your friends to do the same. Opentable has a gift card marketplace where you can search by location, cuisine and more!   
  • If you’re local to Gilbert, their Farmers Market downtown has many vendors offering pre-orders and pickup.
  • Book an event or party in the fall. Book your DJ, caterer and photo booth now. Show these people that we need and want them to continue to serve the community. 

And, when you see a healthcare worker, thank them for taking care of your community.  They are struggling, too. Things are likely to get worse before they get better. But as worried as I am, I am confident that TOGETHER we can make it through this. We will come out the other side stronger than before. 

I’ll be reaching out over the next week or so just to see how you’re doing and to ask if there’s anything I can do to help. If you don’t want to wait for me to call you, click HERE to schedule a call now. 

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Coronavirus and Your Travel Plans 


March 17, 2020 BY Shanna Tingom, AAMS®

Coronavirus is continuing to spread worldwide since its origination in China. The virus has entered countries in the Middle East, countries in Europe and even America. It is important to consider..

Existing Travel Plans


It is completely understandable if you would rather not travel internationally, especially to Eastern Asia, while this coronavirus outbreak is underway. Unfortunately, however, getting a refund may not be possible. It is important to contact the airline and the airport of your flight to ask about a potential refund or other options available.

Some airlines are providing refunds for trips to China. Others are offering free route changes only if a layover was where outbreaks have occurred.

Hotels are more readily able to provide refunds if you cancel your trip according to the guidelines set forth in the booking contract. Cruise ships have also been understanding in providing free tickets for another cruise. Some even have offered refunds.

Travel insurance does not provide very significant assistance in providing refunding or modifications for existing travel arrangements. It really depends on your specific policy, however, especially if you have a cancel for any reason benefit. It is still possible, however, that you may not have this benefit or that the benefit may only offer credit or partial refunds. 

Future Travel Plans


It is important to consider the spread of coronavirus when thinking about future travel plans as well. It is always important to make sure you are protected in case an outbreak occurs where you are headed and you have to cancel. This can be done through making reservations where refunds are possible.

It may be more expensive to book travel arrangements where refunds are allowed, but it will be well worth it if things have to change. Double check before submitting you are booking to make sure that you have gotten a refundable booking. When booking an accommodation that is able to be refunded, you can easily make travel changes. 

Waiting Patiently


Some individuals have already booked international trips in which they are not sure what is going to happen. It is important to wait patiently as many of these trips required a lot of money. Be patient as things could change at a moment's notice.

Be sure to keep up with the latest updates of the spread of the coronavirus through the Center of Disease Control. It is also important to ensure you are watching the news to ensure the destination of your trip or your layovers are not where there are outbreaks of the coronavirus occurring. Be sure you check to see that all of your sources are legitimate, however, and be ready to make travel changes if necessary.

Stay Informed


The spread of coronavirus is a scary threat to many international travel arrangements and plans for many individuals. It is important to consistently monitor the spread of the virus and where current outbreaks are. Be ready to make plans if plans need to be made, and be sure to book arrangements that allow for refunds. If you have already booked arrangements, call airlines, hotels, cruise-lines and rentals to know what to do in case the coronavirus spreads to the area in which you are traveling to.

Source: https://www.consumerreports.org/travel/how-spread-coronavirus-could-affect-travel-plans/

 

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How cornoavirus is affecting how we operate

March 16, 2020 BY Shanna Tingom, AAMS®

I’m sure your inbox is flooded with these types of communications right now, and because the President officially declared a national emergency on Friday, and we feel the need to keep you informed as..

Market Information

We have added a page to our website specifically for COVID-19 and market updates.  We want you to be as proactive as you can, so the most current market data will be posted HERE. Your password to access this page is HFS2020.  You can subscribe to this page if you want the updates sent to you as soon as they are posted. We will send periodic email communications as necessary and encourage you to check this page for updates in the meantime.

Business Modifications

We offer virtual and phone meetings for all clients.  You do not need to come to our office, even if you live just around the corner. If you have an in-person appointment and would like to change that appointment to a virtual one, reach out to Danielle at danielle@heritagefinancialaz.com.

That being said, our offices will continue to be open by appointment during regular hours (Monday-Friday, 9-5). We will continue to hold appointments in our offices and are taking the following precautions:

  • Wiping down doorknobs and other frequently touched surfaces with antibacterial wipes multiple times each day
  • Offering tea/coffee in disposable cups only
  • Having anti-bacterial hand soap and hand sanitizer available and diffusing a purifying essential oil blend throughout the office
  • We will not be shaking hands or making physical contact in any way with people that come into our office. This honestly will be the most difficult part of these modifications for us, and we appreciate your understanding. 

Lastly, we have decided to postpone our 5th anniversary party on April 17th.  We have hope that the virus will be contained by that time due to all of the changes our nation is currently making. Even so, to keep everyone as safe as possible, we thought it necessary to cancel this event for the time being.  We will notify you when we have secured a new date. The party will go on! 

Business Continuity

We can work 100% virtually and will move in that direction if Arizona experiences a dramatic increase in diagnosed cases.  If any members of our family or anyone we have come in contact with are diagnosed with COVD-19, we will take every precaution and self-quarantine as necessary. 

We have redundant staff in multiple locations throughout Arizona and the country should one of us be diagnosed.  Shanna, Greg and Nestor are able to assist with investment management if the need arises, and Amy Walls of Thimbleberry Financial can help with Financial Planning and other business continuity issues if need be.  In addition, our broker-dealer, Cambridge Investment Research, Inc. in Iowa is fully staffed to assist, if for any reason, we are unable to. 

We know this can be a scary time for you and your families, and it has certainly made for a tumultuous market.  Know that we are watching and evaluating your investments and the market multiple times each day. 

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What a wild ride this week!

March 16, 2020 BY Shanna Tingom, AAMS®

WHEW!  I think I have whiplash after this week.  I’ve been an advisor for a very long time, and I’ve never seen anything quite like this.  BUT, there have been a number of short-term periods in the..

Recent history with stocks and viruses is that markets overreact leading to significant buying opportunities along the way. Over a 38-day trading period during the height of the SARS virus back in 2003, the S&P 500 index fell by 12.8%. During the Zika virus, which occurred at the end of 2015 and into 2016 the market fell by 12.9%. There are other examples, but they all passed, and the market recovered and hit new highs. Will this happen again? Our view is that it is highly probable.*

So, why the drastic up and down see-saw this week?   Individual and institutional investors couldn’t really reconcile the BAD news of the spread of the virus with the “good” news of Biden’s Super-Tuesday win and the Democratic race narrowing.  Biden is widely considered a more moderate candidate than several of the others, and more moderate candidates are considered more economically favorable. 

And, what’s ahead?  I wish I knew.  But if this health crisis is like almost ALL of the others (with the exception of the HIV/AIDS Crisis) the period of time following the initial period of panic will be good.  You can see why I feel this way by downloading the comparison HERE.  As you can see:

6-month change of the S&P 500 Index following the start of the epidemic was positive in 11 of the 12 cases, with an average price return of 8.8%.**

12-month change of the S&P 500 Index following the start of the epidemic was positive in 9 of the 11 cases*, with an average price return of 13.6%**

This is why I DO NOT advocate selling out of fear.  This is, however, a GREAT time to buy!  And, any dividends and interest that you get that reinvests during this time will buy you more for your money. 

An update on eMoney:  As you may know – we started a major upgrade to that software at quite possibly the worst possible time, but once we started, we had to finish it.  What does that mean to you?  Logging in to view your accounts on eMoney you might still be experiencing: 

  • Problems logging on
  • Duplicate accounts showing
  • Missing accounts

We are proactively reviewing all accounts daily to resolve these errors.   Please email danielle@heritagefinancialaz.com if you notice these things and we’ll make a note of it.  If you have issues with logging in, she can also help you. 

I know this is a scary time in the market and in our economy.  I’m always here if you need me! 

*First-Trust Economic Report, Time to Fear Coronavirus? 2/25/2020**First-Trust Epidemics and Stock Market Performance since 1980

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Coronavirus, the markets and more

March 16, 2020 BY Shanna Tingom

If you've been paying any attention to the news the last few days, they've been reporting a play-by-play of the market movement, the spread of the coronavirus, and more.  But - should you care what..

And, if you've logged in over the last few days to see how your investments are doing, you may have noticed your investment accounts looking a little strange.  On Monday, we started a major upgrade of eMoney, the technology that we use for your portals.  MOST of the issues have been resolved, but some account are still appearing twice.  We will be resolving these issues on our end over the next few days.  If you have the website book marked, you should change that bookmark to THIS one.  This link will also reside on our client website, which also includes helpful support articles, and the ability to chat with us and schedule appointments, AND MORE!    Remember the password is HFS2020.  

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