Hartford Business Journal

www.HartfordBusiness.com • April 6, 2020 • Hartford Business Journal 7 We're Here to Help You Get There There's a difference between understanding your vision and making your vision happen. At Key Private Bank, our wealth management team works with you to help you get where you want to go. Whether you're across the table or across town, we act as an extension of you, navigating the road ahead, so you can focus on what's important. We see your potential. We know how to help you achieve it. And we're here for you every step of the way. Put your plan into action. Contact Elissa Eddie at 860-293-4130 or visit key.com/kpb today. Key Private Bank is part of KeyBank National Association. Bank and trust products from KeyBank National Association. Investment products are: NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY Key.com is a federally registered service mark of KeyCorp. ©2020 KeyCorp. KeyBank is Member FDIC. 190107-521554-1137855289 S P O N S O R E D C O N T E N T The Bear Market is Back: What Should Investors Do? Stay disciplined and seek opportunities to upgrade portfolios. Don't succumb to panic. By Elissa Eddie, Key Private Bank Vice President and Team Leader A fter having avoided several near misses, US equities fell into bear market territory for the fi rst time in more than 11 years, plunging a dizzying 32% from record highs regis- tered just one month ago and ending the longest bull market in history. The "Coronavirus Crash" has been one of the swift- est peak-to-trough markets decline ever, and the hibernating bear has come roaring back in a major way. In addition to materializing swiftly and suddenly, the bear market has been widespread, with nearly all asset classes (save cash) experiencing losses in the past few weeks. As a result, many investors are justifi ably asking, "What should I do now?" First and foremost, Key Private Bank strongly be- lieves that investors should not panic and abandon their long-term plan, nor should they eliminate eq- uities from their portfolios in a wholesale manner. As the primary growth engine for most portfolios, equities will benefi t from future economic expan- sion once it re-emerges. That said, it is also important that investors carefully evaluate the types of equities represented within their portfolios and consider making some minor tweaks during this time of extreme uncertainty. While we reiterate our view not to sell equities in- discriminately, we urge investors to enhance an existing equity portfolio by adding high-quality companies and pruning lower-quality companies. High-quality companies are those that exhibit above-average and relatively enduring profi t mar- gins, possess lower levels of leverage on their bal- ance sheets, and are led by experienced, proven, and aligned allocators of capital. Low-volatility stocks represent another category of equities that can provide some cushion dur- ing a bear market. As their name suggests, these stocks are intriguing for their defensive asymmet- ric attributes: They participate in up markets but decline less than broad market averages in down markets when volatility typically surges. Similarly, large-cap growth stocks tend to outperform their small-cap value counterparts during bear markets when, in general, earnings growth is scarce. Understandably, bear markets trigger emotional responses in all of us. Fueled by an incessant cas- cade of negative events, recency bias can stoke fear and cause investors to extrapolate the pres- ent to the future, often leading them to overreact or freeze in place. In our view, while it may still be premature to add aggressively to equities just yet, we think investors should assess the types of eq- uities they own and consider upgrading their port- folios during this time of immense uncertainty. We also advise investors to be mindful of potential opportunities to improve the diversifi cation of their portfolios and help position them for the future. Sunnier days will arrive, and we believe that inves- tors who remain deliberate and disciplined, do not allow themselves to be overtaken by panic, and seek opportunities to upgrade and enhance their portfolios will be rewarded over time. Any opinions, projections or recommendations contained herein are subject to change without no- tice and are not intended as individual investment advice. This material is presented for informational purposes only and should not be construed as in- dividual tax or fi nancial advice. KeyBank does not provide legal advice. KeyBank is Member FDIC. KeyCorp. © 2020. CFMA 200323-769447 Investment products are: NOT FDIC INSURED* NOT BANK GUARANTEED* MAY LOSE VALUE * NOT A DEPOSIT* NOT INSURED BY ANY STATE OR FEDERAL AGENCY Elissa Eddie serves as Vice President and Team Leader for Key Private Bank and leads a team of wealth managers and fi nancial ad- visors serving high clients throughout Connecticut and Massachusetts. Key Private Bank is a leading provider of wealth manage- ment solutions and advice for high-net worth clients, including wealth advisory, investment management, trust administration, customized credit, family offi ce and private banking services. Ms. Eddie is located at KeyBank's 100 Pearl Street, Hartford offi ce and can be reached at (860) 293-4130 or elissa_eddie@keybank.com.

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