Five Strategies to Help Deal with Market Volatility

A sudden drop in the market can have dramatically different implications for someone just starting their career compared to someone nearing retirement. What’s important is you understand your situation and your financial plan.

Connect with your advisor to discuss your investing time frame, goals and strategy to make sure you’re still on track.

Read about the benefits of creating a financial plan.

Short-term losses can trigger anxiety, but letting emotions drive your investment decisions may prove costly. One key to living with market volatility is focusing on long-term results rather than the daily bumps along the way. Staying the course can be difficult, but it can also create opportunities.

Diversification is a staple of investing. But as markets change, your portfolio may need to evolve. Times of volatility offer a great opportunity to reevaluate and possibly rebalance your asset mix.

If you’re looking for additional diversification, hedge strategies may help you reduce volatility.

Learn about the benefits of hedge strategies.

Don’t be passive in the face of volatile markets. After all, this is your money, and your future. Being comfortable with your plan and your portfolio are important, but so is knowing your tolerance for risk.

Got a cough? Go to a doctor. Engine trouble? See a mechanic.

If you’re concerned about market volatility, don’t hesitate to talk to your financial advisor. They can give you professional advice, go over your financial plan and help you determine any steps you may need to take. Call them or send an email to set up a meeting.

How Does Loss Aversion Affect Investment Decisions?


We're wired to feel twice as bad about a loss as we feel good about a gain. Volatile markets can tempt an investor to forego future opportunities rather than face the possibility of a loss. And that may cause long-term goals to fall by the wayside.

Watch other Investor Behavior videos.

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