Navigating Market Volatility with Confidence and Stability
At Petersen Hastings Wealth Advisors, our commitment to your financial well-being is our utmost priority. Lately, we have been getting questions pertaining to the market and its recent fluctuations. We want to reassure you that we are monitoring your portfolio during these uncertain times and will make any changes that are necessary to ensure you are on track to achieve your financial goals.
Understanding Market Volatility
Market fluctuations are a natural aspect of investing. Just recently, on July 15th, 2024, the S&P 500 Index hit a new high of 5,667.20 points. After financial and economic reports indicated a possible recession, the index decreased very quickly over a few days and hit a daily low on August 4th, 2024 of 5,186.33 points, an 8.5% drop from its recent high. As this is being written, the S&P 500 Index currently sits at 5,537.27 points, which is gaining back to its July 15th high point, and nearly 6.6% higher than just over a week ago.
While volatility can be unsettling, it’s essential to remember that markets have historically experienced periods of turbulence followed by periods of recovery and growth. History serves as a reminder that while short-term volatility can cause anxiety, it does not dictate long-term outcomes.
Our Approach to Volatility
- Strategic Diversification: We build diversified portfolios to mitigate risk and capture opportunities across various market sectors. This approach helps cushion the impact of volatility and supports steady growth over time.
- Proactive Adjustments: Our team continuously reviews and adjusts your portfolio as needed, responding to market conditions while keeping your financial objectives at the forefront.
- Long-Term Perspective: Our methodology for successful investing requires a focus on long-term outcomes rather than short-term fluctuations. We encourage you to maintain a disciplined approach and trust in the strategies we’ve established when building the plan that fits your wants and needs.
Staying the Course
It’s natural to feel concerned during periods of market uncertainty. However, making impulsive decisions based on short-term market movements can undermine your long-term financial goals. We advise staying the course and relying on the comprehensive planning and prudent investment strategies we’ve put in place together. Temporary market declines are normal and very different from a permanent loss of capital. The most effective antidote to volatility has simply been the passage of time and tuning out the noise.
Here to Support You
Your trust in us is deeply valued and we are here to support you through every market condition. Stay tuned for an official invite to an upcoming webinar we are hosting with dynamic speaker, Apollo Lupescu, with Dimensional Fund Advisors (DFA). This is a can’t miss event that will cover trending topics, such as: markets and the election, interest rates, inflation, and much more.
If you have any questions, please contact your financial advisor. Our team is ready to provide the guidance and reassurance you need. Thank you for your continued confidence in Petersen Hastings Wealth Advisors.