Even in market slumps, clients’ priorities should remain appreciation, not tax worries. “Losses in a bear market, painful at the time, have historically been recouped in subsequent recoveries,” said John Zaller, chief investment officer at MAI.
Others agree, noting that savvy investors take advantage of downturns by buying low.
“When the equity markets pulled back in November and December 2018, we rebalanced client portfolios and purchased equities when they were on sale,” Primeau said.
Added Womack, “Markets also have a tendency to overshoot during run-ups and sell-offs, so for those clients with the means to do so, taking advantage of the buying opportunities can deliver attractive returns.”