At VIA IV investments, we consider ourselves permanent owners of our assets. When we buy an asset class, we consider owning it in perpetuity (of course with periodic rebalancing to keep our risk constant).
If the market goes up or down, or if the news media makes some comments good or bad, our exposure to these assets is unchanged because they will always be part of our portfolios.
One very public example of that played out recently, with media personality James Bianco in the middle of March. He was on CNBC when the market looked really bad. He made a statement that everybody should sell everything (again, this was in March 2020).
With our current headlines of geopolitical issues, China trade wars, viruses, there’s always a reason to get out of the market. There will always be “scary” headlines. However, it’s important to realize that you have to do something with your money.
The COVID-19 pandemic has rattled the market and put tremendous pressure on investors. VIA IV clients can be assured that they are protected through exceptionally diversified portfolios — which are invested in indexes around the globe. As a result, VIA IV clients are not exposed to the downturn of any specific company that permanently goes out of favor. When markets bounce, indices naturally follow. Single stocks don’t necessarily do the same.
That’s not the case for people who are not diversified. For example, an investor with all their money in restaurant stocks right now would not be a good place due to COVID-19 closures. Furthermore, when the economy recovers, those specific industries might not recover in the same way the overall market does.