Market Volatility

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Feb 28, 2020

Dear Clients and Friends of World Trend Financial and Terry Lockridge & Dunn

Given the market volatility of the past week, we want to take this opportunity to provide our perspective.

If you are following the news, you are aware that financial markets across the globe have experienced increased volatility over the last several weeks and in particular over the last several days. This heightened volatility has been driven in part by the continued spread of the Coronavirus across parts of Asia and recently into other countries around the globe. It is difficult to fully quantify the potential economic impact of the virus as it will largely depend on the length and severity of the outbreak. It could severely stunt world markets or it could blow over in the coming weeks. We continue to closely monitor market conditions and are here to help you with any questions you have.

We do not intend to be dismissive of the depth of this sell-off – it has been widespread and relatively severe. In addition, the virus has taken thousands of lives and appears poised to continue spreading. But we are mindful of two constants with markets. One is that some unexpected crisis is always looming. Two is, given reasonable periods of time and reasonable purchase prices, profitable and financially solid companies have historically returned value to shareholders over the long term.

During periods of an unexpected crisis like this, we often get asked, “What will happen next?”. Those that have been with us before during previous periods of market volatility understand we avoid making predictions on short-term market performance. We accept that market volatility is both natural and unpredictable. This is why our core philosophy is any money needed within the next 5 years should not be invested in equities. For those funds with a greater than 5-year time horizon, we are comfortable investing in a well-balanced, diversified portfolio weighted towards equities. Market environments like the one we are currently experiencing can understandably cause investors angst and will test your resolve.

We welcome the opportunity to meet and discuss any concerns you may have. The investment advisor representatives of World Trend Financial can be reached at 319-364-3041 in Cedar Rapids and 319-339-4884 in Iowa City.


Tory Meiborg

President and Partner at World Trend Financial

Disclosure:Investment advisory services offered through World Trend Financial. Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Rd, Davenport, IA 52807 (563) 326-2064. Member FINRA/SIPC. World Trend Financial and Ausdal Financial Partners, Inc. are independently owned and operated.