Volatility is all part and parcel of investing in the stock market. 2017 saw the market experience lower volatility, as confidence grew, but in 2018, the bounce back in volatility was pronounced as unease over global events increased.
To help navigate market volatility, it’s best to stick to your plan, diversify your holdings and very importantly, expect and accept volatility. Your goal, whether it be retirement, education or a large purchase, will determine your asset allocation and time horizon.
Investors with diversified portfolios, who stay in the market, have historically and consistently experienced steady gains over time. So, ignore the noise and daily market movements, and focus on the long term. It’s important to remember that volatility also presents buying opportunities.
It’s a good idea to review your investment objectives whenever you have a major change in your life, so keep in touch with us.