In the last ten years we’ve seen an explosion in e-commerce, and a major phenomenon within e-commerce has been the direct to consumer (DTC) model. Savvy entrepreneurs realized that they could lower price by removing supply chain middlemen—without compromising profit. 
The uncharted waters for our society have created chaos in the financial markets. Like every other crisis we have huge drops in financial assets and panic selling. That’s to be expected.
Luckily, the Federal Reserve can step in like a rich uncle whenever we get ourselves in trouble.
The silver lining in a temporary decrease in financial assets is the ability to get a better entry point on planned investment and ride up a future rally in tax-preferred accounts like Roth IRAs, 529s, and HSAs.
It’s definitely hitting the fan out there. The virus has hit almost every asset class and nothing is safe other than cash. Even bonds are selling out.
This is the proverbial “Black Swan Event” that, no doubt, creates a sense of panic every time we look at the markets.
But you should look at this as a temporary downturn in financial assets.
Since Monday the Dow Jones has tumbled further than any week since October 2008. The equity markets are officially in correction territory and most experts are attributing the selloff to the effects of the coronavirus.
In light of the market mania, it can be difficult to stick to fundamentals and very easy to abandon your prior planning and hard work.
Gambling, gaming, speculating.....it's not investing.
Each year, seemingly thousands of financial institutions, professional investors and everyday financial advisors provide a forward-looking outlook for the coming year. These outlook papers serve as forward-looking predictions for the market and economy. Ostensibly, investors leverage these insights to position their portfolios for success.
There is no shortage of intellectual geniuses in the investment community. For decades, the brightest, most ambitious go-getters from all over the globe have flooded into asset management firms in search of their investment fortune. I won’t pretend to be half as smart as these folks. I’m not a CFA, nor do I play one on TV.
Disclosure: Claro Advisors LLC ("Claro") is a Registered Investment Advisor with the U.S. Securities and Exchange Commission ("SEC") based in the Commonwealth of Massachusetts. Registration of an Investment Advisor does not imply any specific level of skill or training. Information contained herein is for educational purposes only and is not to be considered investment advice. Claro provides individualized advice only after obtaining all necessary background information from a client. Disclosures and Terms of Use.
© 2022 by Claro Advisors, LLC. All Rights Reserved.
EMoney
Fidelity
Schwab