Maneuvering Through Volatility
Actionable investment strategies in the face of volatile markets
Volatility has returned to markets in an unexpected way. However, there were underlying indicators that pointed to an increase in volatility prior to the COVID-19 pandemic.
Human behavioral biases drive investors to act. Sidestepping the market’s worst days would result in greater rewards vs. missing the market’s best days, so the desire to act is rational. However, it is extremely difficult, if not impossible, to time the market with any real consistency.
A portfolio that limits the amount of downside capture may outperform over the long-term, even if it sacrifices some of the upside capture.
The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice. The information provided should not be considered as a recommendation to purchase or sell a particular security.