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Don’t Let a Recession Faze You

from Don Nalls, The Nalls Sherbakoff Group, LLC.

Dear friends,

Here at the Nalls Sherbakoff Group, we are convinced that there is not one bit of evidence that any investor, prognosticator, pundit or talking head can predict the market. None. Three weeks ago, I was discussing the futility of market predictions with a new client, and he told me that he just “knew” the market was going down a good bit more. His “gut” told him so. “Just knew it.” The next week, of April 6-10, the market was indeed volatile: to the upside!  In fact, the S&P 500 was up 12% to 2789.82, the best week in the market since 1974. The S&P 500 ended the week of April 10, up 25% from the March lows. We say it again: predicting the market is a fool’s errand. As a species we just can’t help it: we look for trends in data when there are none. 

If predicting the market is a fool’s errand, then using maths, economics and finance to understand, and guide one’s investment decisions is not. Enjoy this wonderful piece by the research team at DFA titled, “Long-Term Investors, Don’t Let a Recession Faze You.” We heartily concur.


The Nalls Sherbakoff Group, LLC

DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal, or tax advice. The Nalls Sherbakoff Group, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of, or reliance on the information. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of The Nalls Sherbakoff Group, LLC. Past performance does not guarantee future results.