5 Questions with Rachel Reynolds, Financial Advisor, During COVID-19

The Homewood Chamber is asking local experts for their thoughts on the Coronavirus crisis. The second interview in our series is with Edward Jones Financial Advisor Rachel Reynolds.

1) What should individuals do to protect themselves in uncertain economic times?

These are extraordinary times. The unique nature of this biological event on both a global and regional scale leaves many of us with an unsettled feeling. We’re all concerned about the health and well-being of our families and friends with an added later of what is happening in the markets. In fact, the only expectations we can have is that market volatility likely will continue for some time. So how can we navigate these pullbacks?    

  • Avoid the temptation to panic. This pullback, just like those before it, won’t last forever. You’ll want to be invested when the rebound takes place.   
  • Leverage the power of diversification. A balanced portfolio of 65% stocks and 35% bonds has held up better, dipping roughly half as much as the Dow.

(Source: Morningstar Direct. Equities represented by the S&P 500 Index; bonds represented by the Barclays Bloomberg Us Aggregate index. Edward Jones calculations) 

2) How can a financial advisor assist during recessions or pipeline disruptions? 

You should hear from your financial advisor frequently during recessions. One of the ways your advisor can assist is by rebalancing your portfolio. Trimming overweight allocations in your portfolio and then using that to fill gaps in underrepresented areas can help put you in a position to navigate the volatility as it continues. 

3) What is the best single piece of advice you can give to people concerned about their retirement funds?

Measure your progress against your goals, not the peak value of your portfolio or short-term fluctuations. If your retirement goals haven’t changed, your strategy to achieve them shouldn’t either. 

4) Can we expect the markets to rebound? And how long will a rebound take since they have fallen so far? 

The short answer is yes: We can expect a rebound. The longer answer is it might take some time, and we think this volatility is likely to continue in the interim. The magnitude of these daily swings is a reflection of the unique risk of this human health care crisis and the unprecedented efforts to contain its spread. This range of unknowns raises the uncertainty around the timing of a rebound and the impact between now and then. It often feels like the stock market takes the stairs up but the elevator down! 

5) Are there any opportunities given the financial climate right now?   

Absolutely. Lean into volatility. History shows the best times to be opportunistic are when it feels toughest to do so. Long-term investors don’t need to capitalize on this pullback all at once but should consider opportunities to benefit from this decline over the longer term.

7 Hollywood Boulevard

Homewood, Al 35209








7 Hollywood Boulevard

Homewood, Al 35209