THE STOCK MARKET IN THE HEADLINES: CUTTING THROUGH THE NOISE
With its wild swings and surges in volatility, it’s no wonder the stock market has been making headlines across all types of publications – financial and otherwise. Understandably, investors turn to these sources to be kept abreast of the latest trends and predictions. Less understandable are the varied and often contradictory market perspectives touted between leading financial sources. From gloom and doom to optimistic outlooks, investors are constantly bombarded with confusing sensationalist reports that either fuel panic, or offer hopeful reassurances. We want to quiet the noise, cut through the anxiety and demonstrate why these headlines don't normally impact your investment portfolio.
First, let’s examine this inflammatory trend in news headlines from the past two days:
The bull market is over: Louise Yamada
- CNBC, September 1, 2015
US Markets Recover a Day After Big Plunge
- Chicago Tribune, September 2, 2015
Global market volatility the new norm?
- New York Times, September 2, 2015
Similarly, in the span of a week, the New York Times published these varying perspectives on the upcoming Federal Reserve rate hike:
Challenged on Left and Right, the Fed Faces a Decision on Rates
- August 30, 2015
Optimistic About Inflation, Stanley Fischer Suggests That Fed Will Stick to Plan on Rates
- August 29, 2015
Job Forecast Is Another Reason for the Fed Not to Raise Rates
- August 26, 2015
These headlines offer a distorted view of economic reality, serving only to inflame investor anxiety. Here’s what’s really important to your investment portfolio (hint - it has nothing to do with what’s in the news):
At Russell Capital, our investment strategies are structured to help absorb the impact of market volatility. Declines like these are why we speak with clients about risk tolerance and invest accordingly. With strategic structuring, investment accounts should closely mirror a client’s tolerance for risk. Integral to our investment process, is active management of clients’ portfolios to constantly evaluate our allocation of assets. We continually review our balance of aggressive growth, core, and value areas of the market, as well as our attention to domestic vs. international investments, in order to help protect clients’ assets from adverse declines. Regardless of what news pundits and doom-sayers report, these market pullbacks are normal and are an unavoidable risk of investing in the stock market. In fact, downdrafts in the market can provide opportunity to take ownership of much more for much less.
If you are interested in exploring this topic further, please don't hesitate to contact us at [email protected], 859-254-5225.
Posted by Russell Capital
We serve as the trusted advisor and financial manager for working and retired professionals, multi-generational families, companies and charitable foundations in 38 states and the District of Columbia. Read more ›