Inflation hasn’t been a big concern over the last 40+ years. It has returned and was initially termed by many as ‘transitory’ meaning it was expected to be short lived. Anyone who has been to the grocery store, the gas station, paid a utility bill or purchased goods or services for their business is realizing that we are past the short term phase.
When it comes to your important financial goals, such as retirement, it can be unnerving to see the value of your investments rise and fall. What can you do to prepare yourself for times like this? We have a few suggestions that may help you.
Interest rates, political agendas, corporate earnings, and other economic forces can lead to stock market volatility. This volatility, also called risk, can stoke fears and motivate some investors to make rash decisions that ultimately jeopardize their financial future. Although you cannot control the economic forces that drive market volatility, you can control how you react when volatility occurs.
Recent stock market volatility rivals or surpasses those of 1987, 2000, 2001, and 2007 to 2009. However, Instead of focusing on what we can’t control, we actively seek out opportunities for our clients.
Between the COVID-19 crisis and other related economic challenges, navigating these ever-changing market variables may have proven difficult. That’s why it’s so important to have a strategy built with flexibility and professional guidance to help your retirement plan stay the course.
Between soaring consumer prices, rising interest rates, and recent market volatility, you may be concerned about what may happen next. News headlines don’t necessarily correspond with the performance in your portfolio, especially on a long-term basis. Chances are, it may not be as bad as you think.