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Ciccarelli Advisory Services – Staying in Touch

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We understand that uncertain times can be worrisome. As you are aware, we have seen significant changes to the financial markets, the economy, and generally, our everyday lives in a very short period of time.

As a valued member of our CAS family, we want you to know that we are here for you.

We are reaching out to let you know that we are here for you in the event you need to speak with us.  Please feel free to contact us via phone or email at ciccarelli@cas-naplesfl.com if you would like to schedule a 15-minute call with us to discuss your portfolio.

We have suspended taking on new referrals, new client relationships, marketing, and all non-essential client work for the time being so that we can focus on client portfolios.

During this time, we are not only considering your financial security and asset protection, but we are also looking at opportunities.  The bottom line is we will get through this; it is just a matter of time.  Here are some considerations that are top of mind.

1)      Primary Concerns:

  • Cash Flow – Your cash flow needs are an important factor. We want to avoid selling securities at a lower value, if possible. If you have enough cash to support your cash flow needs for the next 6-12 months, let’s stay the course. If you do not, we need to connect to begin strategically raising cash.
  • Market Risk and Volatility – Volatility in the markets tend to play on our emotions.  You and I react when our account values drop as they have been over the last several weeks. This is human. The coronavirus is likely to get worse before it gets better. With that said, research and history show us that the prudent thing to do in times like these is to remain invested and focus on your long term objectives.

2)      Opportunities:

  • For individuals that have been overweight in cash, this may be the time we have been waiting for.  By observing current valuations, we feel there will be great companies and industries that are priced for opportunities to buy for long term growth, income, and appreciation. We suggest that excess cash be invested for long term objectives.  A dollar-cost averaging strategy has been proven to work well during these times.  Please contact us if you would like more information on this strategy.
  • Tax Loss Harvesting – Due to the recent pullback we are now seeing an opportunity to realize losses on taxable accounts to offset future gains.
    • For some individuals, we can take a loss by selling what may be considered a riskier asset and purchasing into an equity position that has less inherent risk…potentially reducing the overall risk level of your portfolio.
    • These losses may be useful to offset gains from the sale of positions that are significantly overweighted in your portfolio. The gains from the sale of the highly appreciated stock can be offset by the realized losses and then the proceeds can be re-invested in a more diversified way. This strategy may serve to reduce single stock risk in your portfolio.
  • If you are comfortable with your cash cushion, perhaps consider deferring or minimizing withdrawals from your portfolios.

We will be communicating on a regular basis via email, newsletters, and by telephone. If you have any questions or concerns, please do not hesitate to give us a call or email. We are here to serve you.

Stay safe and healthy!

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