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Volatility is Back - 3 Ways to Handle

Volatility is Back - 3 Ways to Handle

September 25, 2020
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Welcome to the Weekly SUMmary - 09/25/2020

Market volatility appears to be back to round out the year. There is a lot going on in the nation and around the globe that would indicate a choppy ride into 2021. That said, there is an abundance of data that argues against making drastic changes to your investment portfolio. Having a sound process in place to select investments that have a strong track record, as well as allocating where opportunity may present itself is one way to ride through uncertain times.

1. Don't Panic!

  • When investments are sold, there is a potential for a taxable event
  • When investments are sold, there is a confirmation of gain/loss (i.e. if the market has lost 5% and an investment is sold, that 5% loss is confirmed until invested again)

2. Consider the Alternative

  • If you sell, what do you purchase instead?
  • Do you hold cash, missing out on market activity? (There are many informational pieces that shows what missing out on market activity will do to a portfolio.)

3. Stick to the Long Term Plan

  • Typically speaking, there is usually a long term plan to continue investing, whether through a retirement plan or another account. What happens if you stop this?

Lastly, if you're concerned, call. I would be happy to discuss anything and everything. I know it is not always easy to discuss finances with friends and family. The reason I entered this industry is to understand times like this and help those that I can.

Comments on the market are related to recent activity related to major US indices.

image from https://images.app.goo.gl/CSrYgQ2nd4v8Xaeb9

 

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.  (09/20)