Navigating market volatility is like being a skilled car mechanic. Just as a mechanic encounters various engine troubles, unexpected breakdowns, and ever-changing diagnostic challenges, investors face the twists and turns of market fluctuations. Both require expertise, adaptability, and the ability to identify and fix issues swiftly. Just as a mechanic adjusts their tools and techniques to repair a car, investors must calibrate their strategies and make timely adjustments to weather the unpredictable road of market volatility.
The recent market volatility has been caused by many different factors, I feel one of the main causes has been inflation and rising interest rates. Rising prices of goods and services injects uncertainty into the markets. During periods of rising inflation, corporations’ profit and growth margins may be hit, affecting investor confidence which in turn affects their willingness to take on risk by holding stocks. The Federal Reserve is trying to lower inflation by raising rates which in turn also causes mortgages and car loan rates to go up as well.
At YTS, we feel confident in our knowledge, resources, and investment vehicles to help us through these uncertain times. I constantly joke with clients and tell them we retire a handful of times every month. These clients that are retiring have gone through the ups and downs of market volatility with us and have valued us along the way. If you have not reached out to us about our retirement/financial planning services, please feel free to call us and set up an appointment.
The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.