The stock market can be a cruel place, and deciding on how to divide your investments can be a large task. So, where should you start? The period of time until you’ll need the money you’re investing—what investors call your time horizon—plays a big influence in that decision. You’ll also need to determine how effectively you can—or cannot—deal with financial dips and uncertainties. This is referred to as risk tolerance by financial specialists. Fees and returns are crucial, but regulating your emotions during market instability is essential for long-term success.
In the end, multiple studies suggest that financial advisors can make their clients more money by acting as behavioural trainers by actively managing their assets. That’s where we come in!
Historical review of stock market volatility:
2020 (-34%)
2008 (-56%)
2000 (-49%)
1990 (-20%)
1987 (-34%)
1980 (-27%)
1973 (-48%)
Markets go through periods of high and low volatility regularly. It’s normal! And higher volatility isn’t necessarily a bad thing. Like so many things, volatility cuts both ways and you generally won’t hear much hand wringing when it cuts to the upside.
If you’re a medical professional that is in need of a financial advisor to guide you through the stock market volatility and your options, contact us here and we’ll answer all your questions!
