3 Things to Remember with a Volatile Stock Market

As an investor, it can be exciting to watch the type of market we experienced throughout 2017; many of us witnessed a growth in our portfolios that had us excited for the future.

However, when the stock market fluctuated more than 1,000 points on Monday, February 5th, it had many investors wondering how secure their money really is.

In light of these recent market changes, I’d like to address some common concerns I hear from my clients in order to make some sense of the ever-changing economy that we have experienced since the birth of the stock exchange.

Volatility is normal

Okay, I’ll grant you that the last week has been a little extraordinary in the swings we’re seeing in the stock market. The point remains, that as investors, we must expect fluctuations. There will be good days and there will be bad days. It’s important to remember that we’re in this for the long haul; changes in the stock market should not be feared. They should be expected.

Knowing your long and short-term goals

It’s important for any investor to have a clear understanding of market volatility – that way we can move forward and address your long-term financial needs. This allows us to put together an investment allocation that meets your goals and manages your appetite and tolerance for risk. Investing is a long-term commitment. We’re not focused on short-term outcomes. We’re focused on long-term results.

You’re not alone

Having a better understanding of how long-term investing works can alleviate a lot of the stress that comes with a volatile stock market. In the case of the clients I serve, they know they’re not in this alone. If they’re nervous about the fluctuations (or excited by the opportunities such volatility may create), they know that I’m here to listen and evaluate the situation. We work hand-in-hand to manage their current financial life and long-term success. When it comes to your investments, a little reassurance goes a long way.

Andrea Blackwelder Financial Planner

Andrea Blackwelder is a Certified Financial Planner ™ Practitioner and the co-founder of Wisdom Wealth Strategies, a fee-based financial planning and investment advisory practice. Andrea looks at your complex financial planning puzzle and assists you with the best options and financial strategies that align with your financial needs. To contact Andrea, email andrea.blackwelder@wisdomws.com.

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