volatile

Four Reminders to Help You Navigate Volatile Markets


By Michael Morey, Financial Advisor, RJFS

With the recent volatility we have experienced in the market, especially this week, we thought it would be helpful to pass along some timeless pointers to keep in mind.

  • We live in an age of the 24 hour news cycle and information is available to us with the click of a button.  The key is to sift through all the noise and decipher what is helpful and what is simply filling up air time.  Or better yet, just tune out the “noise” all together.
  • Remember that volatility is the rule, not the exception.  We have been spoiled recently with very little volatility in the markets, 2017 in particular.  With our short-term memories we fail to remember that volatility is normal and that the stock market doesn’t simply go straight up.  In fact since 1980, the S&P 500 has averaged intra-year declines of 13.8% yet has managed to have annual positive returns 29 out of those 38 years.  
  • Don’t allow short term volatility to derail long term strategies.  If you are a long-term investor, avoid making knee-jerk reactions because of volatility that will contradict your long-term strategy.  In fact, times of market volatility could be seen as buying opportunities for long-term investors. Take advantage of them. Remember, the only people who actually lose money are those who sell their investments when the market is down.
  • Lastly, lean on your financial advisor if you need to, that is what we are here for.  We are all human and seeing the ups and downs on our monthly statement can be an emotional rollercoaster.  If you have questions, concerns or would like to discuss your investment strategy, please do not hesitate to contact us.  We look forward to and enjoy talking to you, our client.

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Any opinions are those of Michael Morey, and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”  

-Warren Buffet