Retirement Planning Advisor Raleigh NC Chapel Hill

Thoughts on Recent Market Turbulence

In Asset Allocation, General Financial Planning, Investments, Personal Finance, Retirement Planning by Chip Hymiller

Given the turbulence in the financial markets during the week of May 3rd, we would like to provide followers of our blog with a few thoughts and insights.

First, the recent volatility in the markets are primarily a result of fears related to debt concerns of a number European countries including Greece.  These countries are debating how to best handle their fiscal and budgetary problems.  Meanwhile, the global markets are reacting to the uncertainty surrounding the extent of these problems, as well as the possible solutions.

Also, while we do not know if the fiscal problems some European countries are experiencing will have global economic implications, we would like to reinforce the following:

  • Sound investment decisions are not influenced by fear, greed or other emotions.  Rather, they should be based on a realistic understanding of your own long-term investment objectives.
  • Investments made in your portfolio should be based on the realization that there will be periods of uncertainty.  Those investments should be selected with the confidence that they can, not only withstand these periods, but also capitalize on opportunities that may surface.
  • Instead of attempting to time the markets, successful investors tend to focus on the “controllable” elements of their investment strategy (portfolio allocation, investment costs, etc.).
  • Your investment strategy should be customized and based on your specific long-term financial goals and investment objectives.

With the wounds of the “great recession” still fresh in everyone’s mind, we are very aware that it may be difficult to ignore the negative headlines that tend to stoke renewed fears for many of you.  However, we are confident that this crisis, like all others before it, will pass and will ultimately be viewed as a minor blip.

Please feel free to contact our office if you have any questions or would like an objective review of your portfolio.