“Trade War!” “Tariffs!” “Global Trade Tensions!”
The headlines these days are not for the faint of heart. As an investor, navigating these times has less to do with trying to figure out the economics and politics of it all, and more to do with keeping a cool temperament and ensuring you follow through on your strategy.
Here are some key strategies to consider and important reminders to review:
Do Your Work Upfront (Again?)
- When you started your investment program and drafted your investment strategy, you (hopefully) took into account your time horizon and tolerance for risk.
- If you haven’t, or feel like you need a fresh look; it isn’t too late. Do not get caught up in the ups and downs of the market, or the headlines du jour. Make sure the strategy you choose is one you can stick to.
- Your risk tolerance and investment strategy should NOT change when the market fluctuates… so have confidence that a well-thought out plan can and should be followed in all market environments.
Diversification: A Cornerstone of Risk Management
- Diversification helps mitigate risk by spreading investments across different asset classes such as stocks, bonds, real estate, and commodities.
- Assets like gold and government bonds can provide stability during market turbulence and times of economic worry.
- This can help to potentially smooth out the ride, investing in asset classes that are lowly correlated with one another.
- Review your portfolio on a quarterly basis to make adjustments if needed, to ensure you are rebalanced properly.
Balancing Long-Term and Short-Term Strategies
- Focus on your long-term investment goals, which can help you weather short-term market volatility.
- If you experience changes to your personal goals or objectives, that is a reason to revisit your overall investment plan.
Leveraging Professional Advice
- Work with a firm who can help you take advantage of opportunities that may arise. Usually, whenever there are dramatic market fluctuations, there are also areas of opportunity.
This article is being provided for informational purposes and should not be construed as investment advice or relied upon as a basis for any investment or financial decision. Past investment or market performance is no indication of future results. Diversification and rebalancing do not guarantee a profit or protection against loss.
Duly-registered and duly-licensed representatives offer securities through Equitable Advisors, LLC (NY, NY (212) 314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI and TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.). Beacon Wealth Partners is not owned or operated by Equitable Advisors or Equitable Network. PPG-7597624.1 (2/25) (Exp. 2/29)