Novice and experienced investors alike throw around the term “market volatility” a lot. You may have prepared a well-crafted financial plan however increases and decreases in market values – especially steep declines – can make you question your investment strategy.
When market volatility arises, history can teach us some important lessons.
1. Market volatility is normal
Market volatility is completely normal and in some cases can be used to create strong returns within your portfolio. Increasing values in the market can help you achieve the best results in the long-term to meet your financial goals.
2. Be mindful about how you react to market changes
Reacting when a downturn happens can often be more harmful to your long-term goals within your investment strategy. The key is to stay consistent and level-headed during volatility and keep the finish line in mind.
Easier said than done and rightfully so.
3. Your advisor will keep you accountable and goal-oriented
We can’t predict market activity; however, working with professionals can lead to good investment strategies. It can also act as a buffer to tune out the noise of volatile markets. An advisor can hold you accountable to your financial plan. That includes ensuring you don’t lose sight of your overall financial goal. You’ll receive valuable advice about staying on track to meet your goals.
4. Weighing convenience and peace of mind
We’ve seen “robo-advisors” and other self-service options emerge. They can offer convenience and low fees, and those options may work well for some; however, you don’t want to lose the peace of mind and expertise an advisor can offer. The hands-off approach can create havoc for investors looking for answers during difficult times in the market. The true test of advisors is how they carry themselves and interact with clients when market values decrease.
Working with your financial planner can help you plan for the unknown. You’ll receive valuable advice about staying on track to meet your goals. Use the power of professional advice and lean on your advisor for help. You’re not in this alone!
Disclaimer: The views, information, and opinions expressed in this article belong solely to myself (unless otherwise noted) and do not represent opinions of any agency, organization, employer or company with which I have been, am now, or will be affiliated with. I do not warrant or make any representations concerning the accuracy, likely results, or reliability of the information provided in this article.
* Mutual Funds distributed by Sun Life Financial Investment Services (Canada) Inc.