The Setup:
Chief Investment Officer, Keith Lockwood, joins us to break down the current market volatility we are experiencing and what you need to do (or not do) to protect your financial future.
The Combination and Key Points:
On today’s episode of Unlocking Your Financial Future, our Chief Investment Officer, Keith Lockwood joins us to discuss the volatility we are seeing within the stock market. The market doesn’t like unknowns and when we see big swings in the market it can be because of these unknown factors. Right now those factors are inflation, supply chain problems, and the Russia-Ukraine war.
As of May 6th, the S&P is down over 13%, the NASDAQ is down around 22%, and the DOW is down around 10%. We’ve seen these big swings pretty early on in the year. These big drops happened around April as the market was unaware of what The Fed would do in regards to interest rates.
The market being down is normal though, we forget that as investors. This is a normal pullback during a bull market. Whether this is still a bull market isn’t yet known. We’ve been on an unprecedented market run and now we need to navigate the new trends of the market.
In times like these, it’s tempting to want to make moves. Is it time to get defensive? Keith has always been a big believer in diversification. Diversification is proving valuable now, you may be down but you aren’t feeling the full brunt of the market swings if you’re diversified.
For retirees and pre-retirees, it’s always important for us to consider where your income is going to come from. Being disciplined and working with an advisor if you want to reposition is essential. Market volatility is often blown out of proportion and as long as you manage your money correctly, you can withstand these turns.
If you have any questions, please reach out to us at https://www.baschrock-fg.com/ or give us a call at 330-473-1060
To hear more you can listen to the full episode or use the timestamps below to find a specific segment.
0:57 – What we’re going to cover
1:38 – What is causing the volatility?
3:27 – Why did the market drop in April?
6:31 – Is there an alternative?
8:33 – Should we be making moves?
10:26 – Staying disciplined and repositioning
13:49 – Media drives the panic in investors
Key Quote:
Unless you have pressed the sell button, you haven’t lost one dollar. As long as you have a properly diversified, dividend or income producing portfolio, your lifestyle is not going to change.
- Keith Lockwood
Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!
Related Content:
Protecting Yourself Against Fraud
