As volatility in the markets remains high this week it may be time to consider what your plan is for the turbulence. While this may depend on your life stage it will also depend on your temperament.  On this week’s episode, we’ll provide a look behind the scenes of how we’re managing through the recent market pullback and ask some pointed questions that might help you develop your own plan as well.

Danger On The Horizon?

It’s been over a year since we’ve seen volatility like this in the markets. However, it doesn’t matter how much time transpires between pullbacks, they can always be a bit nerve-wracking. Becuase of this, it’s important to understand where you are in your investing journey and how that might affect the steps you might consider taking. For instance, are you in the accumulation stage of your investing journey with your goals still far off? If that’s the case you might be best served by steadily contributing, even if the market continues its decline from here. Are you getting close to retirement or already there? If so, you might want to make sure you know what the plan is for your investments, what that means for your retirement journey through the regular ups, and downs on the market.

Changing With The Market

Since many of our listeners, and clients, are in the life stages of approaching retirement or already retired, managing risk is one of the key components of their plan. We’ll take a behind the scenes look into what we’re doing as investment advisors, in a market such as this, to attempt to protect portfolios from the potential for large swings in the stock market.

Index or Momentum Fund?

Are all those popular index funds really just a momentum fund in disguise? Have the indices become lopsided? We’ll take a look at how an index fund works and why it might not be much different from the momentum strategies that many index adherents talk down. After all, many index funds follow market cap weighted indices which, by their nature, overweight higher moving stocks and underweight lagging stocks. While this momentum can be incredibly useful on the upward moves in the market it is also possible that same momentum could accelerate moves to the downside.

What’s Our Plan?

Volatility rarely vanishes quickly. If this is a change in mood for the markets, investors might want to settle in for increased volatility going forward. With that in mind we’ve begun prudently cutting positions in our client portfolios to free resources up to find new opportunities should the market continue lower. Now that you know our plan, what’s yours? Maybe now is the time to give yourself some peace of mind and complete your LIFE Plan.