Market Volatility and Market Risk Management Strategies
If you have ever tried to improve certain area of your life, you know how hard change can be.Everyone makes resolutions, but just few people are able to keep them. When you want to make a real change, you can increase your chances of success by making a sound plan. My role in your financial world is to act as your mentor and coach, helping you create and implement a plan that is the appropriate for your risk tolerance, time horizon and your investment objectives.
Up and down market movement is a fact of life and one of very important market parameters. Think of market performance as “economy’s EKG”. A flatline would mean no activity. When we invest in the market, we expect volatility to play a part in our investment process; nevertheless, in times of market stress, the temptation to exit altogether is very strong. Don't let your emotions drive your decisions. With a sound financial plan and adequate risk management strategies, it does not have to be a source of anxiety. Stay focused on your long-term investment objectives to help ensure your plans stay on track.
While the stock market has been extremely volatile, history has shown that the long-term direction of the stock market is upward. From 1973 through 2007, the U.S. stock market (as represented by the Standard & Poor’s 500 Stock Index) delivered positive returns in 27 out of 35 years.*
Disciplined investment strategies such as dollar-cost averaging** can help smooth out market fluctuations. Dollar-cost averaging is the practice of investing fixed amounts in equities at set periods of time. Over time, your average price per share will usually be reduced, and may help put you in a better position to weather a volatile market.
My wealth building and management approach is to set a clear, customized plan. Then, I streamline every area of your financial life to help ensure risk and expenses are reduced, while investments are customized to your risk tolerance limits. That way, your wealth has the chance to grow.
An optimal financial plan takes into consideration a lot more than asset allocation. Elements such as cash management, protection management and retirement planning are also key pieces to a balanced plan. Overlooking any of these elements can put your dreams and goals at risk.
If you are not already working with a financial advisor, now is the time to meet with me to find out how market volatility is affecting your plan and to determine if you need to make adjustments.
______________________________________
*Mellon Analytical Solutions, LLC and NPI
**Dollar Cost Averaging does not assure profit and does not protect against loss in declining markets. Investor should consider his or her financial ability to continue securities purchases through low price level periods.
Up and down-market movement is a fact of life and one of very important market parameters. Think of market performance as “economy’s EKG”. A flatline would mean no activity. When we invest in the market, we expect volatility to play a part in our investment process; nevertheless, in times of market stress, the temptation to exit altogether is very strong. Don't let your emotions drive your decisions. With a sound financial plan and adequate risk management strategies, it does not have to be a source of anxiety. Stay focused on your long-term investment objectives to help ensure your plans stay on track.
While the stock market has been extremely volatile, history has shown that the long-term direction of the stock market is upward. From 1973 through 2007, the U.S. stock market (as represented by the Standard & Poor’s 500 Stock Index) delivered positive returns in 27 out of 35 years. *
Disciplined investment strategies such as dollar-cost averaging** can help smooth out market fluctuations. Dollar-cost averaging is the practice of investing fixed amounts in equities at set periods of time. Over time, your average price per share will usually be reduced, and may help put you in a better position to weather a volatile market.
My wealth building and management approach is to set a clear, customized plan. Then, I streamline every area of your financial life to help ensure risk and expenses are reduced, while investments are customized to your risk tolerance limits. That way, your wealth has the chance to grow.
An optimal financial plan takes into consideration a lot more than asset allocation. Elements such as cash management, protection management and retirement planning are also key pieces to a balanced plan. Overlooking any of these elements can put your dreams and goals at risk.
If you are not already working with a financial advisor, now is the time to meet with me to find out how market volatility is affecting your plan and to determine if you need to make adjustments.
______________________________________
*Mellon Analytical Solutions, LLC and NPI
**Dollar Cost Averaging does not assure profit and does not protect against loss in declining markets. Investor should consider his or her financial ability to continue securities purchases through low price level periods.