How to Handle Market Volatility

If you’ve checked your investment accounts or read any recent headlines you might have whiplash. We went from a new high on the Dow Jones Industrial Average on May 16th to seeing markets fall rapidly only days later. Welcome to volatility.?

I could go on for days talking about what is happening or rattle on about what fund managers and economists expect in the coming months but it’s a holiday weekend. And to be honest while some care about the “why” behind this big jumps most (if not all of us) want to know how to handle the uncertainty. ?

Because in its simplest terms that’s exactly what volatility is. Rapid uncertainty. ?

During times like these I remind my clients of a few things-?

1. When do we need this money? If it’s no time soon (which it shouldn’t be if it’s invested in the stock market) then we discuss the ability to wait out this storm?

1. How much are you willing to lose? Most of us don’t want to lose anything but as we know there’s rarely a reward for growth without risk of losing at some point along the way?

1. Is this a buying opportunity? Now, I never give recommendations without knowing a clients full financial situation (and a signed contract). But when looking at major market moves you can ask yourself if this is a time you (or your advisor) want to buy into the markets, stay the course, or sell?

1. What are your goals? I mentioned when you need the money but also consider what you need the money for. The importance of this goal will also have an impact on how much volatility you are able to withstand ?

Lastly, volatility affects us all differently. We all have our own goals, time horizon, and most importantly money story. The way we were raised around money impacts how we feel about and react to volatility. So don’t let the comparison game take over during times of uncertainty. ?

If you're looking to talk more about your asset allocation or time horizon amidst the market volatility apply for an intro call here: https://tanisfingroup.com/contact/

Tanis Financial Group is a dba of The Wealth Boutique (“WB”), a registered investment advisor with the Securities and Exchange Commission. WB and Tanis Financial Group are not under common ownership but owned and operated separately. All financial planning and advisory services are provided by The Wealth Boutique.