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Patience and Discipline: The Keys to Long-Term Investing Success



With the markets continuing to fall this week into bear market territory (defined as drop of 20% from the highs), it is natural to be concerned. On Thursday, March 12, we had the largest single day percentage drop (10% on the Dow Jones Industrial Average) since the "Black Monday" crash of 1987 when the Dow fell over 22% in a single day. The Investment Committee at WT Wealth Management has been meeting regularly and we are actively monitoring the situation for all of our clients.

We want to remind you all that it was just over four weeks ago that markets were setting record highs and the US economy was viewed as strong. Since then, sentiment has changed dramatically, but our analysis has led us to believe that the market is expecting a recession far more severe than we believe will occur. In light of this, and as prescribed by our pre-defined investment management strategy, we rebalanced portfolios to reduce Yen, Gold and Treasuries all of which have rallied strongly and were above our target weights. We used the proceeds to invest in stocks, which were down 25% or more over the past month and were below target allocations. We want to stress that this was not designed to take on more risk in your portfolios, but rather to bring the risk level back to a level consistent with your long-term plan.

Making these adjustments during market declines is emotionally a challenge, even for us with extensive investment experience. But sticking to our disciplined investment approach is fundamental to your long-term investment success. Our job is to remove the emotion from the investment process and focus on fundamentals. Though four weeks of down markets may feel like forever, it is a small time period in your investment horizon. As Warren Buffett said, "Be fearful when others are greedy and greedy when others are fearful." As you know, we have a conservative, disciplined approach and believe this discipline is likely to be rewarded as markets recover.

And remember, recoveries can come quickly. A BlackRock study of the last 20 years showed 24 of the worst trading days were within one month of 25 of the best trading days. Given these rapid movements, market timing is not the answer. Our experience shows us that patience and discipline are two of the most important ingredients for long-term investment success.

As always, we are here and keenly focused on doing our absolute best for you every day. Please reach out at any time if you would like to discuss the markets. We are here for you.

Investment Committee of WT Wealth Management
Investment Committee of WT Wealth Management Investment Committee of WT Wealth Management





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There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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