Scott Ferguson from Financial Concepts joins Troy Thompson to talk about the effects COVID-19 and other global events can have on the financial market.
Troy thompson: welcome to on the beat, everyone.
I'm troy thompson.
Joining me today, of course, is scott ferguson from financial concepts.
How are you, my friend?
Scott ferguson: i'm doing good.
How are you doing?
Troy thompson: i am great.
Look, as everyone knows, we're doing this via zoom and, of course, it is because of the pandemic covid-19.
I can only imagine that it has turned the financial market upside down for you, scott.
How are you dealing with that and what are you doing about it?
Scott ferguson: yeah, no, listen, the markets have certainly reacted negatively to this event.
We've seen events like this.
Anytime the market faces uncertainty, you see a whole lot of negativity, which has certainly happened.
The market had a very wild month of march.
April, we saw a good bit of recovery, right?
It shows us that just as quickly as something can go down, it can come back.
Now, is it back to where it was?
No, not by any means, but we are certainly seeing that we're starting to head hopefully in the right direction.
Do i think that we're going to have more of a bumpy road along the way.
Absolutely, but we've seen some uncertainty, and the markets don't like uncertainty, which is what we're faced with right now.
Troy thompson: of course.
Look, for everyone out there that has stocks and shares, i know i look at it every day, which drives me crazy, but where do we go in the future here, scott?
Scott ferguson: i'm going to tell you little bit of a joke.
I always tell folks, looking at the market day in and day out, if you look at that chart, it kind of looks like an ekg printout; if you look at it every day, you may end up needing to get your own ekg because it may stress you out too far.
Don't measure performance in days, weeks, or months.
Measure investment performance in years or decades.
Scott ferguson: looking at it long- term, yes.
Have we seen some short term volatility?
Absolutely.
Is it scary?
Without a doubt, but if your dreams and goals haven't changed, then odds are you don't need to react and necessarily do anything to your investment plan.
If you were invested the way you should be based around you and your goals before this happened, most likely you can stay that way.
Just prepare for some volatility along the way.
Troy thompson: now, we have heard all over the news that we have seen this in the past, correct?
Scott ferguson: we've seen events like this before, right?
You can go back anytime that there's been a major economic event in the world, the markets typically react negatively, right?
2007, 2008, you've got early 2000's that the tech bubble, that market was a long drug out bear market.
You've got very quick events, so one that's most similar to this would be 1997 where the market went down over 20% in one singular day.
The market did it in a matter of weeks.
This time, not a single day, but we've seen quick events before.
We've seen these things happen.
The key is to stay focused on that long-term and not react in the short term.
Troy thompson: it makes me want to ask you the next question is, how is it affecting your business and how are you doing business with your clients?
Scott ferguson: yeah, no, so covid- 19 has certainly changed the way that we all do business, right?
Just like you and i are doing a zoom now, we're doing zooms day in and day out with folks who need to be reassured and want to sit down and review their plans.
Believe it or not, there's still a lot of folks who are looking to invest, taking advantage of this market dip.
To me, this is a once in a lifetime type of opportunity where we saw the longest bull market where that market went up for a decade.
Now, we've seen that market kind of drop that down a little bit.
It's a huge buying opportunity, right?
Our dollars will buy us more now because we're buying it on sale.
Troy thompson: right.
Look, i know you can't predict the future when it comes to stocks and we don't want to be doing that for all of our viewers, but where do you see it going?
Scott ferguson: look, if you look back over the course of history, every bear market, every dip you've ever seen before this, there's been a recovery that's followed it.
I can't promise that recovery is going to come this time, but if i look back historically and seeing that there's always been a recovery that's followed a market dip, i'm going to have hope and faith that that recovery is going to come.
That's why when i say that if you were invested based around your dreams and goals, odds are we can stay invested the way that we were because we were invested how we should be.
When much recovery comes, we're going to be going back in that right direction.
I've got good hope and faith for the future.
I believe in america.
I believe in the human people as a whole.
Troy thompson: we believe in you as well, scott.
Thank you so much.
We truly appreciate it.
May you and your family stay safe throughout this whole epidemic.
Scott ferguson: thank you.
Same to you.
Troy thompson: if you want to find out more information about financial concepts, there it all is up
Scott Ferguson from Financial Concepts joins us today to talk about the effects COVID-19 and other global events can effect the..