As an investor, it is just as important to manage against the downside as it is to reach for the upside. At McCall & Associates, we don’t believe you can “time the market”, but we do invest off of some tried and true principals.

1. What are the funds you will need in the next 18-24 months? Whatever they are, make sure they are safely in cash.

   •  Ideally, if you are going to be making a large purchase or will need access to funds over the next 18-24 months, this should be sitting in cash, not invested. When you have money that you are expecting to need in the short-term, you want to make sure it is available. If the unfortunate time comes when we do have a recession, you can rest easy knowing those funds are safe from the downturn.

2.   Diversification

   • It is true that you can not eliminate systematic risk by diversification, but it is necessary to be a well-rounded investor. By diversifying, you are essentially investing in different areas that would react differently to the same event. In our opinion, It is the best way to help maximize return, while working to minimize risk.

3. Live within your means

   • When financial times are good, it may be tempting to purchase items that are a little outside of your price range, even if you have to go in to a little debt. The truth is that recessions can tighten your budget and expose you if you have overreached. As Warren Buffett says, “Only when the tide goes out do you discover who’s been swimming naked”. Whether we are experiencing good times or bad, set a household budget that is realistic and thorough, and audit it monthly. If you are diligent with your finances now, you will have the opportunity to purchase that “want” item safely later in life.

4. Trust that your long-term investments are going to be okay

   • Although the market can be extremely volatile at times, the truth is that it has always rebounded and ended higher. In fact, the S & P 500 and Dow Jones Industrial Average hit all time-highs the week of December 11th, 2019. In 1994, the S& P 500 ended at 465.25. 25 years later, it currently sits at 3,170. It more than quadrupled during a period that included the dot-com bubble and the great recession.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of McCall & Associates and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.