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Handling Market Volatility with Confidence

Handling Market Volatility with Confidence

September 14, 2021

"The only thing we have to fear is fear itself" - Franklin D. Roosevelt, from his 1933 inaugural address.  

I love that quote, it was quite a proclamation in 1933, and it can certainly be helpful for today's investors.  Just look back at the last few years and you find that investors had to overcome quite a few little hiccups within their own portfolios.  

When I look back to 2019, investing was fairly easy. The Standard & Poor’s 500 Index (S&P) returned nearly 28% for the year with only a few bumps along the way. Today, however, we're faced with a very different market. More and more uncertainties are seemingly hitting the headlines every day, from the global spread of COVID-19 and its potentially wide-spread economic impact, to a historically low Treasury note, and plummeting oil demand, resulting in a 13% drop in the S&P year-to-date, substantially wiping out gains from the past 12 months.

With the financial markets’ ups and downs over a short period, it’s easy to spot patterns and just as easy to create patterns, if you so choose. However, long-term returns have historically been very favorable to investors who stick to their investment strategies during times of volatility and avoid the temptation of attempting to time the market.

You may be fearful today, with equities crashing and the 10-year note at historic lows. COVID-19 may be new, but market shocks are not. They don't have to be something of which to be fearful. We are continuing to watch market conditions. If you have questions or concerns, contact us today to discuss ways that we can answer your “what ifs” and help you feel confident in your savings and investment strategies.