I’ll keep this post short: Market Volatility has recently been increasing. In layman’s terms, that means that your account value may be moving up AND down a lot more that you’ve seen over the past 5-years.
Is this a sign that it’s time to panic? No. Do we need to change your retirement plan investments? Probably not. Should we talk about what’s going on in the world in the macro-economic and political front that is causing these broader market movements? Yes!
When you and I initially met to discuss your investment and personal goals (I’m addressing my clients here), we invested according to your timeline, risk tolerance, and purpose for ‘that’ particular investment. Varying volatility in the market is normal. Sometimes the market (your investment) moves up. Sometimes the market drops—significantly. And sometimes the market doesn’t do much.
I am compensated by my clients to keep them from making emotional decisions with their investments. I know how it feels to open a monthly/quarterly statement and see my own valuations down by 10% or more in only 3-months. I also know how it feels to see my investments performing well over another statement period.
Finally, I know that if I tried to time the market (get in and out…and back in again) using all of the information available through my professional contacts, I would fall ever farther behind, just as the average ‘emotional’ investor has according to Dalbar Inc*., an authority on financial services market research.
Therefore, I will continue to guide you through this and other more turbulent investment periods via email, phone, and personal meetings. It is important for us to keep an open and frequent communication link between us.
Remember that Arktos Wealth Management (Arktos: in reference to the Greek’s celestial navigation index –the great bear which includes the big dipper which points to the North Star), is your guide through these markets. Wherever the market is heading and regardless of your goals, I will be here to answer any concerns you might have. And I’ll hopefully keep you from acting upon your emotions with your investments.
*Dalbar, Inc. is the nation’s leading financial services market research firm and performs a variety of ratings and evaluations of practices and communications that are committed to raising the standards of excellence in the financial services and healthcare industries. With offices in both the US and Canada, Dalbar develops standards and measurement systems that improve the quality of products, service and compliance for the retirement, mutual fund, broker/dealer, discount brokerage, life insurance, healthcare and banking industries.
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