Recent Volatility and the Value of Your Advisor’s Advice

Feb 08, 2018 | Darmidy Goodine


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Recent fluctuations in the market have dominated the media headlines, and are causing undue alarm in investors. The last 2 weeks have seen investors both enjoying the market high, and then panicking over the low. However, the change in the market was not unexpected, nor is it an uncommon occurrence. Seasoned investors know the markets are cyclical, and they also know that their portfolios have been professionally crafted with their long-term goals in mind.

 

The volatility is not the result of a sudden release of bad news; no shock to the market or unexpected event has caused the sudden fluctuation, and therefore it can only be attributed to a timely market correction. The markets had been abnormally calm for a long time, and volatility like we are currently experiencing is part of a normal and healthy capital market. Economic indicators are still strong and nothing is pointing to an economic downturn in the near future, despite what the media has led you to believe as of late.

 

It is our nature to react emotionally to something as personal as money, and to want to take action to regain control of the situation. We absolutely understand how important your portfolio is to you and your family, and how seeing even a slight decline may cause you distress. Rest assured however, even if you haven’t experienced market volatility like this before, your Wealth Advisor has. She has seen the cycle repeat itself time and time again, and can offer you stable advice with respect to your portfolio. Market timing is an unreliable and potentially dangerous strategy for your portfolio, and could cause you long-term negative effects. The current volatility should be viewed as an opportunity to reconfirm your long-term goals with your advisor, reevaluate your risk tolerance if necessary, and possibly take advantage of some lower share prices.

 

Please contact us to book an appointment to discuss your portfolio with your Wealth Advisor, and take advantage of her decades of financial planning experience in order to ensure you are just as prepared for these lows as you are for the market highs.