In her March 18 Grand Rapids Business Journal Banking & Finance commentary, Anastasia Wiese, JD, CFP® helped readers put the current elevated levels of market volatility in proper context. “While the desire to pull money out of the U.S. markets and sit in cash is a natural emotional response, now is not the time to panic,” writes Anastasia. “Times like this reinforce the importance of having a well-diversified portfolio among global stock and bonds.”
Currently, there’s a collision of political, social, economic, and financial news related to the COVID-19 pandemic – with a presidential election throw in. This means investors are best off bracing for continued positive and negative market swings for some time to come. Fleeing the market at this point results in selling at undesirably low prices.
It also may help to remember that periodic market drops are considered “normal.” For example, while we’ve recently enjoyed a long, relatively quiet run, the U.S. market has historically dropped by 10% about every 12-18 months.
While waiting out the volatility, there are a few proactive steps you can take to best position your portfolio for better days ahead, including consulting with your financial advisor. To learn more, you can read Anastasia’s full commentary here.