Experts Offer Guidance Amid Market Volatility

The recent market volatility has raised concerns among retirement investors, prompting financial advisors to offer guidance on navigating the uncertainty.

Why it matters: Dramatic market swings can unsettle individual investors, leading to potentially hasty decisions that may impact their long-term financial goals.

The details:

• Investment strategists at TIAA expect volatility to persist at least through the presidential election due to various economic and geopolitical factors.
• Despite the uncertainty, financial advisors emphasize the importance of staying the course with 401(k) portfolios and avoiding impulsive actions.
• Historically, the best market days often follow the worst days, and staying fully invested over the past 20 years would have yielded nearly twice the average annual returns compared to missing the 10 best days.
• For 401(k) investors, the recommended strategy is to save as much as possible, diversify holdings, and periodically rebalance portfolios.

What they’re saying:

• “There will be days when the market is up and days when it’s down,” said Andy Smith, executive director of financial planning at Edelman Financial Engines. “Focus on your time in the market rather than trying to time the market.”
• “Pockets of opportunity are always on the other side of the storm,” emphasized Quincy Krosby, chief global strategist at LPL Financial.

The bottom line: While market volatility can be unsettling, retirement investors are advised to maintain a long-term perspective, stick to their financial plans, and regularly review and rebalance their portfolios as needed.

Full story

As #stocks bounce back, led by #Japan, many will be tempted to dismiss the #volatility of the last few days as typical of the wild west nature of less-liquid, trader-led #markets.
A better approach would be to focus on the importance of restoring the dual anchors of solid #growth…

— Mohamed A. El-Erian (@elerianm) August 6, 2024

The recent market volatility has raised concerns among retirement investors, but financial advisors emphasize the importance of staying the course and avoiding hasty decisions. James Grace, director of wealth management at Silver Pine Capital, reminds clients that market fluctuations are a natural part of investing. David Demming, chief investment officer at Demming Financial Services, advises patience during these turbulent times.

Brandon Gibson, wealth manager at Gibson Wealth Management, maintains that sticking to the established financial plan is crucial.

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— ET NOW (@ETNOWlive) August 7, 2024

Patrick Huey, owner and principal advisor at Victory Independent Planning, reassures clients that market corrections are normal and navigable with diligence.

Experts advise patience amid volatility

Magnificent 7 stocks: $650bn lost in Monday's Wallstreet meltdown; what you need to knowhttps://t.co/Ms1bhAbDFa

— ET NOW (@ETNOWlive) August 6, 2024

Glenn Downing, founder and principal of CameronDowning, suggests looking at broader market trends to feel more secure about long-term investments. Alvin Carlos, managing partner at District Capital Management, points out that while stocks may be down, bonds are performing better, providing balance. Andrew Herzog, associate wealth manager at The Watchman Group, encourages clients to remember that economic recoveries often follow downturns.

Juan Hernandez-Ariano, principal at WealthCreate, frames the current market situation as just another phase in a long-term investment journey. These advisors’ perspectives help clients better understand the current market environment and reinforce the importance of staying committed to their financial plans. By maintaining a long-term focus and avoiding emotional reactions to short-term volatility, retirement investors can navigate these challenging times with greater confidence.