Market Volatility Should Not Ruin Your Financial Plan
Volatility is inherent in financial markets. Periods of relative calm and complacency are usually upended by sudden bouts of volatility. Economic shocks or sudden policy shifts are often causes. Even anticipated macroeconomic changes can be disruptive if the reality is different than previous expectations, like, say, a faster pace of interest rate hikes.
Recent market volatility may be unsettling for many, but it should not be entirely unexpected. That is not to say its timing is predictable, just that volatility is a fact of life in financial markets.
Those with a solid financial plan should not have to worry during times like this. A well-thought-out plan prepares for volatility. An investor’s asset allocation should not have to change due to market declines at that moment. Proper financial planning, which includes seeing how your investment portfolio performs through various market conditions, provides relief in knowing that you are still on the right track.
Our partners at eMoney wrote a short piece on how a well-constructed financial plan can help ensure volatility does not prevent you from reaching your goals.
This content was created by a third party. All opinions, comments, conclusions are of the author and not Jackson Creek Investment Advisors LLC. The information published herein is provided for informational purposes only and does not constitute an offer of investment advisory services. All information is subject to change without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your risk and return preferences. Investment recommendations may change, and readers are urged to check with their investment advisors before making any investment decisions. Information provided is obtained from sources believed to be reliable, but we cannot attest to its accuracy. Past performance is not necessarily indicative of future returns. Investment advisory services are offered through Jackson Creek Investment Advisors LLC, a Registered Investment Adviser.