This week’s Tuesday Tip can help you with staying calm during periods of market volatility. Please watch the video below to learn more. If you would like a free review of your current financial situation, please use this link to schedule a free call. You can find an edited transcript below the video.
Hi everyone, today, we’re diving into a topic that’s all too familiar to anyone who’s been watching the stock market lately: Staying calm during market volatility. This can be especially challenging if you’re facing new beginnings, like many women in our community. Whether you’re recently retired, navigating life after a major change, or stepping into a new chapter, it’s important to remain calm and focused when market volatility strikes. Your financial life plan and your portfolio will likely benefit if you can focus on staying calm during market volatility.
Volatility Increased in Early August
Let’s be real—markets can sometimes have a mind of their own. One day they’re up, the next they’re down. This year the markets have been pretty calm – at least until the calendar turned to August. And it seems like every time the market takes a turn, there’s no shortage of explanations. Market strategists and online pundits quickly provide reasons for why stocks are swinging wildly. They can even provide very convincing arguments. In early August, they at least partially blamed a Japanese carry trade!
But here’s the thing: you don’t have to believe everything they say. Yes, they might sound like they know exactly what’s going on, but the truth is, even the experts are often just guessing. The market is influenced by countless factors, many of which are unpredictable. So, while it’s easy to get caught up in the latest news or the opinions of market ‘gurus,’ it’s crucial to remember that you don’t need to react to every headline or forecast.”
This is especially important for those of you who are going through new beginnings. If you’re recently widowed, an empty nester, or just starting to focus on your own financial future, the last thing you need is to make decisions based on fear or uncertainty. Your financial journey is personal and unique to you.
So, how do you stay sane during these wild times? First, take a deep breath. It’s okay to feel anxious but don’t let that anxiety drive your decisions. Stick to your plan—especially if you’ve worked with a financial advisor to create one. Your plan is designed to weather storms like this. Remember, markets have been through ups and downs before, and they always recover eventually.
Second, surround yourself with support. Talk to friends, family, or even a professional who understands your situation. Sometimes, just having someone to listen can make all the difference.
And lastly, tune out the noise. The next time you hear someone explaining why the market did this or that, remember—it’s just one perspective. Trust your own path and focus on what you can control.
The Law of Large Numbers
Also, something important to keep in mind: with market indexes at the levels we see today, even big moves in points are actually much smaller in percentage terms than they might seem. For example, a 500-point drop in the Dow Jones Industrial Average might sound dramatic, but it’s a much smaller percentage of the index’s total value compared to when the market was at lower levels. This perspective can help you stay calm and avoid overreacting to daily fluctuations.
So remember, when markets get wild, focus on the bigger picture. Trust your plan, keep your emotions in check, and know that these swings are just a part of the journey. You’ve got this!
Stay calm, stay focused, and remember the importance of staying calm during market volatility—as this too shall pass.
Thanks for watching! If you found this helpful, be sure to like, subscribe, and share with someone who might need to hear this today. Until next time, take care!
In the meantime, if you have any questions, please email philweiss@apprisewealth.com or schedule a free call.
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For firm disclosures, see here: https://apprisewealth.com/disclosures/
Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.
