Tommy Williams | Shreveport Times

Welcome, once again to the holiday season. I hope you had a wonderful Thanksgiving and have much around you for which to be thankful. Im reminded of the old Zig Ziglar quote about having an attitude of gratitude. Seems that outlook is step one to a joyful experience in life. And is it just me, or does it seem like Christmas decorations are coming out earlier each year?

As I sat in on a luncheon conversation this week I was stricken by an observation. I havent heard anyone complain about their investment advisor in a while! It is true that most individual investors think about the next correction in terms of when, not if well experience a significant downturn. However, as long as accounts move at some pace in a positive direction investor unhappiness will be at a low ebb.

But, as youll recall, it hasnt always been that way. Market corrections are a natural and even healthy part of the economic system. We actually had a doozy last year (bottoming in March), but it happened so fast and before we could gather our wits and try to react it bounced back just as quickly. Being locked down in our houses fearing the outcome of the virus was also top of mind, so our anxiety meter was a little out of whack.

My most memorable experience of investor dissatisfaction happened in early 2009. The subprime mortgage housing bubble was in full force and the news was all about the potential collapse of our entire financial system. A client called me to tell me about his close friend who was concerned about his life savings. I assured him that I knew how he felt and would be glad to help his colleague if I could. We made an appointment to meet the following day.

I was waiting in the conference room to meet this disgruntled investor when he stormed in red faced and agitated. With great animation he slammed an inch thick stack of statements on the table and bellowed (Im leaving out a series of expletives for a family friendly reading) My broker is downtown under his desk not taking calls! I glanced down and caught a glimpse of the logo of a well-known brokerage firm. A firm that was navigating the exact same recession with which I was dealing. We were all in the same boat. Thankfully I was able to retain my composure and simply asked How do you think I can help you? We then settled into a discussion that included his belief that hed lost about half of his savings and it was just a matter of time before the other half was gone. As our conversation me listening as he unloaded months of frustration - progressed one glaring thing emerged. He had called his broker numerous times and got no response. No communication at all, except occasional form letters from New York. When the going gets tough, thats when communication is the most important. This particular individual knew everyones account was down in value, but his friends seemed to be getting a steady stream of communication. Some had even claimed to have moved to cash anticipating the downturn (Well spend more time on that issue at a later date).

I tell that story for a reason. One, Ill never forget that experience. But unto each life some rain must fall. Back to today. There will be a downturn, though our memories can be short and these great returns since March 23, 2020, cannot continue forever. As you head toward the new year make sure you are on the same page with your advisor. Take stock of whats changed (your appetite for risk, need for income, whatever) and be sure you are communicating. If your advisor is under his desk not taking calls or better yet not in touch with you find someone who does communicate effectively and can minimize the anxiety of managing your savings. A lot has changed in the last 18 months. I bet you have changed. In the meantime, my wish for you is that you will enjoy a wonderful holiday season.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal.

RFG Advisory and its Investment Advisor Representatives do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. Please consult your own tax, legal, and accounting professional for guidance on such matters.

Visit us at http://www.williamsfa.com. Tommy Williams is a CERTIFIED FINANCIAL PLANNER Professional with Williams Financial Advisors, LLC. Securities offered by Registered Representatives through Private Client Services, member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through RFG Advisory, a Registered Investment Advisor. RFG Advisory, Williams Financial Advisors, LLC and Private Client Services are unaffiliated entities. Branch office is located at 6425 Youree Drive, Suite 180, Shreveport, LA 71105.

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Has the pandemic changed your outlook? - Shreveport Times