EXECUTIVE
Strategies to
Remember
During Times
of Uncertainty
BY MICHELLE KONKLE, CFP®, CERTIFIED FINANCIAL PLANNER TM , FINANCIAL ADVISOR
OVER THE PAST MONTHS WE HAVE SEEN VOLATILITY RETURN TO THE
MARKET. THIS VOLATILITY IS SOMETHING THAT MANY HAD FORGOTTEN THE
FEELING OF WHILE LIVING THROUGH THE LONGEST BULL MARKET SEEN IN
OUR HISTORY. MANY HAVE ONLY SEEN A BULL RUN IN THEIR INVESTING
LIVES. WHILE YOU MAY BE CONCERNED WITH THE BALANCE OF YOUR 401K
AND OTHER INVESTMENT ACCOUNTS, IT IS IMPORTANT TO REMEMBER THESE
FEW POINTS BEFORE REACTING.
1. Humans are irrational creatures. Time and time again we are told to buy low and
sell high. However, when we start to see the balances fall it is human nature to want to
reduce your loses by moving into ‘safer’ assets. Unless you are in dire needs of the funds
within six months, this is not typically an advisable plan. Studies have shown that time
in the market is better than timing the market. If you exit the market during a downturn
and wait for the ‘right time’ to get back in, chances are you have already missed some of
the best days of the recovery. When navigating a bear market, think of it is fighting a fear.
Stay calm and don’t make any sudden moves.
2. Diversification is key in any market cycle. By diversifying your assets, you will be
able to limit potential negatives felt when one invests in only one security or industry.
MICHELLE KONKLE, CFP®,
Certified Financial Planner TM ,
Financial Advisor
3. Keep investing. While it is difficult to watch the balance of your 401k fall, you must
remember that this is the best time to invest. Depending on an individual investor’s
situation this may be the time to continue contributions and even possibly increase
contributions. Buying during periods of volatility can have tremendously positive
impacts on your portfolio later in life. We often recommend that investors dollar cost
average due to the uncertainties and inability to time the market. This means that they
will systematically invest a certain amount over a specified period. Please contact us or
your financial adviser to discuss if this option is right for you.
66 EXTOL : SUMMER 2020