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  • Content Expert: Wealth Management

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    You may have heard it before: Stock markets like “certainty.” But the global environment has been anything but certain since the COVID-19 pandemic began. Even so, we have witnessed markets doing what they’ve done in previous crises—and that is endure, albeit with changes along the way.

    At Regions, we advise our clients in times like these in much the same way we advise them during more “certain” times—and that is to keep your eye on your long-term goals and the eventual recovery and stabilization of sectors within the markets.

    THREE RECOMMENDATIONS TO HOLD ONTO A POSITIVE OUTLOOK.

    AVOID RASH MOVES
    As uncertainty increases, we have a tendency to become more certain of our own opinions. Yet making big financial decisions when there is so much volatility often leaves investors with lost returns in the long run. They might sell at a low point and miss out on a recovery, for example.

    Portfolio managers at Regions Bank work to put fear aside and focus on data. Our investment portfolios are designed for the long term, with a focus on your timeline, your goals and what our experience has taught us about financial markets. While individual crises come and go, our plan is always aimed squarely at achieving your long-term goals.

    DISCUSS YOUR OPTIONS
    Double-checking your liquid assets might be a good place to start a portfolio review with your advisor. Do you have enough to weather additional storms? How can you be sure? We often have planning meetings with our clients to identify their cash flow needs for the next 18 to 24 months. If something unforeseen happens, we don’t have to make trades when we don’t want or need to—because we’re prepared.

    Remember also that there is often the silver lining of inexpensive stocks when markets are down. As there’s more uncertainty, there’s going to be more volatility. That can mean opportunities, too.

    GET A STRESS TEST
    Our client portfolios are run through computer simulations to measure resilience against possible future financial situations. The simulations determine the probability of success, based on your goals and time frames. We revisit this simulated probability in good times and bad, and that is often the driver behind whether anything needs to be changed.

    While 2020 was a hard year, and there is a lot of uncertainty around what 2021 will bring, a conversation with a wealth advisor may be the difference between success and failure when dealing with the stock market.

    MEET THE EXPERT
    Anne Ferrell Dalton is Vice President, Wealth Advisor at Regions Private Wealth Management.
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