April 2020 - Harbor City Capital

Archive Monthly Archives: April 2020

3 Tips For Navigating The Economic Triple Threat

Are you wondering how best to navigate the current crazy world we find ourselves in? Or what you can do to protect yourself, your family and your business from the economic headwinds (to put it lightly) blowing in from all directions?

JP Maroney here, and before I share some thoughts on how business owners and investors more broadly might best get through the next few months, I want to remind you of an age old truth:

Markets hate uncertainty. 

And with the world facing what in recent TV and radio interviews I’ve been referring to as an economic “triple threat” of:

  • Coronavirus and the ensuing shutdown…
  • Plummeting oil prices…and to top it off…
  • An upcoming presidential election.

Times are pretty darn uncertain. 

Most of our clients are business owners, and as you might imagine, this uncertainty can have some serious knock-on effects…for their businesses as well as them personally and financially. 

How can it not?

Most of them have significant portions of their wealth…and hoped for future prosperity…invested in the stock market. 

So naturally when the market tanks 30% in a matter of days, companies cancel dividends, and thousands of businesses face outright bankruptcy — it can be hard not to get emotional. 

Many of these clients end up glued to the financial news, following the daily ups and downs as they try to figure out when or if to bail out and start selling.

Or if they’ve already sold (or were stopped out) wondering if it’s safe to get back in. 

Everyone remembers the massive rally that started 2009, so don’t want to miss the proverbial train when it leaves the station. 

And that’s on top of carrying the emotional weight of trying to run a business that in many cases is struggling right now, while caring for employees and their families. 

Add it all up, and what you get you get is an emotionally drained business owner, making emotional decisions, with emotional consequences. 

Obviously, this isn’t the best state of mind to be making.

The more self-aware among my clients recognise this, and given my long background as a business owner (going on 30 years now) they’ve been asking how I’m dealing with everything that’s going on. 

I’ve shared the following with them privately already, but I figured it would be best if I wrote them out so others in similar situations can benefit too. 

1️⃣This isn’t a time to let emotions control decision making. 

This applies to investments like stocks as well as decisions made within private businesses equally. 

On the investment side I’ve brought the following up during my recent interviews, but they bear repeating:

Average investors typically buy and sell at precisely the wrong times. They hold on until the pain becomes too great, finally give in and sell, only to see prices bounce not long after, then wait far too long before getting back into the market. 

The most common solution? Ride it out. 

Easier said than done I know, but it’s still the right choice in most circumstances. The market will bounce back. It’s just a matter of time. But what if retirement is rapidly approaching and you don’t have that sort of time? 

What we’ve been advising our clients to do is look at alternative, lesser known options in the fixed income space like our secured bonds. 

(CLICK / TAP the link to find out more about our Secured Bonds Http://securedbonds.com)

And within your own business, good, basic principles still apply. But in times of crisis more than ever, business owners need to look at expenses across the board. Take care of employees, but be sure every dollar has a positive return. 

2️⃣Build relationships with clients. 

Don’t focus solely on your own needs. Clients and customers are hurting too. So think about what services you can provide to make their life easier. 

This is a perfect opportunity to think about what is and isn’t working in terms of what you offer. Be ruthless. And if possible, pivot your product or service toward solving your audience’s problems. 

3️⃣Serve the people in these client relationships

Take this opportunity to build trust with your audience! Bond with them. When this is all over, they’re going to come out of their houses, credit cards in hand ready to spend money. 

Whatever platforms you have to use to your advantage and better serve the needs of the people within these relationships, use! Send out surveys to your email list, respond meeting their needs with advice, resources, etc.,.

Because- at the end of this, your business needs to be top of mind when these people come out of their houses with money in hand.

This is already a long post, but if you want to tune in for more of the advice I’ve been giving my clients, follow this link: http://Securedbonds.com

And if you want to find out how the team at Harbor City Capital is helping investors achieve safe, high yield returns in this and every other environment, give us a call HERE: 321-608-0605

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