Dimensional Regional Director Scott Bosworth discusses the impact emotions can have on an investor’s portfolio, citing research and examples from a recent client event.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

Tracking Number 1-981712

In recent days, the increase in volatility in the stock market has resulted in renewed anxiety for many investors. While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

Recent Market Volatility Download

Tracking Number 1-981712

The impact of missing just a few of the market’s best days can be profound, as this client-ready data visualization of a hypothetical investment in the stocks that make up the S&P 500 Index shows.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters. Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

Tuning Out the Noise Download

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Since most families are sheltering at home, this “spare time” represents an excellent opportunity to catch up on small and important financial matters: the type of tasks that are easy to neglect because we don’t have the time. This opportunity is interesting enough to catch the attention of our local CBS Station KPIX TV in San Francisco.

Please call us with any questions you may have on this or any other financial planning matters. We invite you to forward this message to friends, family, and colleagues who have expressed concerns about today’s economic and investing environment, and might want to talk about their questions. After all, there is no need for people you care about to walk through times like this alone.

“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, reach for a bucket.” —Warren Buffett
The battle with COVID-19 rages on, and the headlines continue to get worse. The number of new cases and deaths continues to grow. Individuals and companies are hurting, with even an iconic company like The Cheesecake Factory telling landlords they won’t be able to make their rent payments for April. This current situation is a human crisis, and there is no way to put a value on the lives that have been lost. However, we will get past this pandemic, as we’ve gotten past every other crisis, and we will see better times in the future. As

Warren Buffett stated, when clouds are dark, that could spell opportunity for longer-term investors.
We’re already seeing some good news on the horizon. The number of new cases may have peaked in Spain and Italy, the epicenter of the outbreak in Europe. Here at home, new cases may begin to slow within the next few weeks, while Seattle, one of the first major cities in the United States to have an outbreak, has reached its peak of new cases. Corporate America is seeing major breakthroughs as well, as Johnson & Johnson announced human testing on its COVID-19 treatment should start by September, and a vaccine may be ready by early next year.

While we wait for containment measures to take effect and for an ultimate cure, the immediate impact to the economy has been devastating. More than 3.2 million people applied for unemployment benefits last week, more than five times the previous record, while US gross domestic product (GDP) is expected to take a historic dive. Remember, the economy can stop by either pumping the brakes or hitting a tree. Our economy has hit a tree, and the short- and long-term impacts of this abrupt halt could be felt for a long time to come.

The double-barreled support from the Federal Reserve (Fed) and Washington’s recent $2 trillion fiscal stimulus plan (CARES Act) won’t fix the root of the problem—only doctors and scientists can—but it may help the economy restart more quickly once the pandemic subsides. Fed Chair Jerome Powell noted we very well may be in a recession, but this isn’t a typical recession, as our economy started from a strong position. The $2 trillion CARES Act, totaling more than 9.3% of GDP, provided an additional boost. For reference, the 2008 fiscal stimulus plan was 5.5% of GDP, showing just how much larger this plan is than anything else we’ve ever seen. These measures may be viewed as a bridge for consumers and small businesses to help them get to the other side, and so businesses are positioned to take full advantage when the economy restarts. The combined monetary and fiscal policy action may be the catalyst to propel a historic bounce back for our economy over the second half of this year.

World War I took more than 15 million lives, only to be followed by the pandemic of 1918, which claimed another 50 million. Very few would have expected to see the boom in technological development, economic growth, and the stock market that followed during the “Roaring ‘20s.” It is always darkest right before the dawn, and our resolve and determination will once again shine through. Longer-term investors may want to consider looking for opportunities to invest in an eventual market recovery, as stocks are in the zone where adding to equity exposure could be quite beneficial. Or as Warren Buffett would say, they better get their buckets ready.

Please stay healthy and contact Cornerstone if you have any questions or concerns.

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of April 1, 2020.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Tracking # 1-975747

Joel Hefner explains why investors may prefer some allocation in equities in addition to bonds in order to grow their long-term wealth.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

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Jake DeKinder, Head of Advisor Communication, explains how capital markets have rewarded investors that are able to tune out short-term noise and stay disciplined over the long-term.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

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Curious about how markets work? This video explains how security prices are set and how they change based on the collective knowledge of buyers and sellers. Armed with this information, investors will better understand how and why markets work.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

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Can investors predict when to buy and sell securities? Jim Davis, PhD runs more than 780 tests on data from 15 stock markets to test this theory.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

The Cost of Trying to Time the Market Download

US Equity Returns Following Sharp Downturns Download

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with Gene Fama, PhD, Economist, and 2013 Nobel Prize Winner

The Nobel laureate explains why long-term investors should know the reasons they’re investing, understand risk, and not focus on short-term ups and downs.

We at Cornerstone hope you found this video helpful. Please call us with any questions you may have on this or any other financial planning matters.

Also, we invite you to forward this message to friends, family, and colleagues who have expressed concerns about short term volatility. And its potential impact on their long-term financial well-being. Creating an opportunity for success starts with the ability to make good choices when times are challenging. During stressful times, this is easier said than done. We are happy to extend to them our thoughts, clarity, and financial coaching. After all, there is no need for people you care about to walk through times like this alone.

Tracking #1-967104