I thought it would be timely to provide a bit of perspective concerning the recent volatility we have experienced. Though the roller coaster of market volatility can be uncomfortable it is a normal and healthy part of market cycles. That being said, I'd like to offer you some potential ways of easing your nerves (for me a couple of tums antacid never hurts), which hopefully might soften the effects of these turbulent times. As always, we will get through this together.
Broad and calm perspective is always best when immersed in this kind of market volatility, and part of that perspective is examining one’s overall portfolio to ensure it is meeting one's objectives both long term and short term.
I encourage you to think about your investments as a whole, and to that end, we can help identify where tax-loss harvesting can support an overall tax-smart investing approach to your portfolio.
Lastly, amid this latest spate of market volatility, here are six important thoughts for you:
- Breathe, and Try to Relax – Making rash decisions about portfolio changes during times of emotional stress often have negative future consequences and can potentially threaten long-term financial goals.
- Separate Fact from Opinion – With thousands of “expert” voices within earshot, it’s important to focus on the facts when reviewing market and economic stories in the media. The markets don’t go up or down for one or two reasons – try to look beyond the scary headlines to get a better pulse of the agendas of those delivering the message.
- Remember Your Long-term “Why” – Why are you investing for the long-term? Commonly, the reason is to set aside some current assets and income for future needs. Ask yourself, “Has that changed?”
- Discuss Your Fears and Concerns – During this time of high anxiety and uncertainty, investors should actively engage their Financial Professional to gather their valued perspectives. Your Financial Professional can assist in re-examining or reviewing your long-term financial goals, and the plan to pursue them.
- Know Your Needs – Investors should always know their needs for their money. If you need to use some of your investment assets in the short term for a major purchase or living expenses, it’s wise to re-assess where those monies are located and into what they’re invested.
- Stay Diversified* – When appropriate, a well-diversified portfolio of stocks and bonds can often alleviate concerns about being invested in the right place at the right time. Properly allocating your assets among various asset classes and diversifying your portfolio among several investment vehicles is meant to provide you with a strategy that can help reduce volatility.
I look forward to continuing to support your long-term financial goals, Please let me know if I can be of further assistance and feel free to share this with others who might benefit from some peace of mind.
Note: Diversification/asset allocation does not assure or guarantee better performance/profit and cannot eliminate the risk of investment losses in declining markets
Wishing you peace and good health,
Laura