Investing in turbulent times – weathering the financial storm

by | Oct 3, 2022 | Financial News | 1 comment

Could volatility be beneficial?

It’s been a turbulent few years for financial investments, especially if you’re new to the game. With markets continually changing and the future uncertain, how can you pursue your financial goals with confidence? If you’ve considered suspending your investment activity, or withdrawing your investments, you’re not alone. But how can you be wisely investing in turbulent times?

According to Manulife Financial, the key is to, “think about time in the markets – not timing the markets.” Earlier this year they posted a helpful article, Be ready to roll through volatile times, and we’d like to share some of their helpful tips with you.

The benefits of volatility

Manulife points to the COVID-19 crash in 2020 as an example of how “volatility can work both ways.” Though there was a sudden crash there was also an equally sudden recovery, with markets actually reaching record highs. 

This means if investors who sold their assets had stayed in the market, they would have not only reclaimed what they lost, but potentially gained on their investments. That being said, Manulife is clear it’s not only about looking at recent examples, but examining the market history.

Manulife Solutions Magazine

Photo courtesy of Manulife Financial, mysolutionsonline.ca

Though turbulence in the markets can be scary and overwhelming, history shows that the markets overall have an upward trend. 

Manulife offers further guidelines to help navigate turbulent times with strategy and patience.

Strategies to weather the financial storm
  • Diversify: Manulife advises a balanced portfolio of equities and fixed income assets. This is because they say stocks and bonds will be impacted differently based on economic conditions. Another option to consider would be guaranteed investment products such as GIAs and GICs. 
  • Taking a long-term approach: A good approach to investing is to see it as a long-term approach, not a race, according to Manulife. No one can know with absolute certainty when turbulent times will come, but investing throughout, “can help you take advantage of both the positive and negative swings in the market.”
  • Remember your strategy: According to Manulife, sometimes what’s needed is a portfolio adjustment, rather than selling all your investment assets. You want to keep your financial strategy top of mind and not react impulsively to changes in the markets.

Research has shown people who work with a financial consultant are more likely to have a financial plan, feel confident about their investments, and accumulate more in savings than those without advice.

Send us an email if you’d like to connect about how ACN Financial Group can help you build an enduring financial foundation.

Read the full article from Manulife here.

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