Yes, there is market volatility… and that’s a good thing.
Most of my clients are unbothered by the changes happening in the financial markets. The volatility in world markets is very active at the moment, yet my clients know this is a natural event. World markets need volatility to “breathe” since it would be impossible for them to only continually grow. I have been serving many of my clients for over 25 years and as I spent those years looking after their financial and business affairs, I also attempted to educate them of these inevitable cycles in the markets.
After almost 30 years in financial services, current events rarely are severe enough to give me pause. The world stock markets ebb, flow, and change. Different countries have different economic “engines” with different parts. With time and technology advancements, parts to those engines wear out, break, and are replaced with new parts that need to be “broken in.” Those new parts could be deregulation, tax reform acts, or more efficient technology allowing more people to participate in making the engine run. This over-simplified description can be helpful in gaining perspective on a topic frequently blown out of proportion by the media.
I read financial news every morning before many people are awake. I read a variety of opinions from experts and from some writers who only claim to be experts. Unfortunately, the majority of what I see is written in a divisive way to scare people. I believe that much of this alarmist tone is caused by knee-jerk reactions of frustration by the writer, trader, or analyst. Many writers are more apt to call for the end of everything as we know it rather than watch it all play out, stick to a solid investment strategy, and rely on the experience of financial markets and ALL the change they have endured in the past. It helps to be selective and look for the financial writers who approach the topic of volatility with a level head. Or, talk with us on our next quarterly call about any concerns you may have.