Volatility

Investing in Uncertain Times

Generally, stock markets have acted very positively since Trump’s election…the so-called “Trump-Bump”.

From time to time, volatility in stock markets is inevitable as investors react to changes in the economic, political and corporate environment.

Take the recent Brexit reaction for example: down a couple of days, back up a few days later.

As an investor, it is important to take a step back at these times and keep an open mindset. 

When we are prepared at the outset for episodes of volatility on the investing journey, we are less likely to be surprised when they happen, and more likely to act rationally rather than react emotionally.

Make me money.

Don’t lose my money.

What`s more important to you?

Most would say: both.

At Parkhouse Financial, we agree.

Accordingly, our investment mandate is to achieve stable long-term growth while protecting your capital.

Recent market volatility across the global economy has left many investors feeling unsettled. Rattled even.

The impulse when living through this type of market turbulence is to do something. Anything.

But, before you do, considering the following:

When markets get choppy, it pays to have a plan for your investments, and, to stick to it!

The markets have become choppy once again, as global demand for oil is outpaced by supply, Greece continues to appear on the verge of a possible exit from the Eurozone, and China tries to balance a slowing economy and potential bubble in real estate.

“Nothing causes investors to question their strategy and worry about their money like a dramatic sell-off,” says John Sweeney, Fidelity executive vice-president of retirement income and investment strategies. “A natural reaction to that fear might be to reduce or eliminate any exposure to stocks, thinking it will stem further losses and calm you fears, but that may not make sense in the long run.”