There are a lot of fears and unknowns in the marketplace with the war between Russia and Ukraine, and the Federal Reserve moves.
A question I often hear is - what are they going to do with interest rates? They’ve risen so rapidly!
The market is driven by so much more than interest rates, though. Those “unknowns” are hard to predict. As an investor, you’re in it for the long-term and have to be ready for those rollercoaster moments.
“So, what we've seen with this uncertainty and therefore fear in the marketplace. The good news is in a diversified portfolio, bonds are doing their job. They are acting as a shock absorber just as designed, and actually, some bond prices are up,” explained Todd Minear.
Buy low, sell high
You may want to think about buying low and selling high.
“So, what we're going to be taking a look at is should we be selling some bonds that are up here and buying some stocks that are down here? This has traditionally been a good move for long-term investors, and you're all long-term investors.”
Focus on the long-term
At Open Road Wealth Management, we reach out to our clients periodically, especially during market volatility, to talk about individual goals and portfolios so we can make decisions that are best together.
“My number one piece of advice is, do not panic. This too shall pass.”
When those “unknowns” happen, don’t overreact. Distance yourself from the news of the unknown and market volatility. Occupy your time doing something else, like getting outside.
Prepare for these moments as an investor by having a diversified portfolio and a risk tolerance that satisfies you long-term.
We want you happy and focused on long-term goals.