IN Shaler Spring 2016 | Page 15

INDUSTRY INSIGHT

FINANCIAL FOCUS

SPONSORED CONTENT

Best Response to Volatile Markets?
Stay Calm.
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buy their stocks at potentially lower prices?
Diversify. During the downturn, just about everyone’s portfolio
was affected. But if yours took a particularly large hit, it might
be because your holdings are over-concentrated in stocks,
especially the types of stocks that fared the worst. You may need
to further diversify your portfolio through a mixture of domestic
and international stocks, bonds, government securities,
real estate, certificates of deposit (CDs) and other vehicles.
Diversification, by itself, can’t guarantee a profit or prevent
against all losses, but it can help blunt the harshest effects of
volatility.
Review your investment strategy. Unless your goals have
changed, there’s no reason to revise your long-term investment
strategy, even in the face of wild fluctuations in the financial
markets. Still, it’s always a good idea to review your strategy
at least once a year, possibly in consultation with a financial
professional. You may need to make smaller-scale adjustments in
response to changes in the economy, interest rates, and so on,
but don’t abandon your core principles, such as maintaining a
portfolio that reflects your goals, risk tolerance and time horizon.

Investing will never be either risk-free or predictable. But by
taking the steps described above, you can relieve some of the stress
associated with volatility and help yourself stay on track toward
your financial objectives.
Past performance does not guarantee future results. Investors
should understand the risks involved in owning investments,
including interest rate risk, credit risk and market risk. The value
of investments fluctuates and investors can lose some or all of
their principal. Special risks are inherent to international investing,
including those related to currency fluctuations and foreign
political and economic events.
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.
MKT-6784L-A-FL EXP 30 APR 2016 PAGE 1 of 2 © 2015 EDWARD JONES. ALL RIGHTS R

n recent months, stocks have fallen sharply from their record
highs, with one-day drops that can rightfully be called “dizzying.”
As an investor, what are you to make of this volatility?
For one thing, you’ll find it useful to know the probable causes
of the market gyrations. Most experts cite global fV'2&