Mind Games: Surviving Volatility
When volatility increases, many investors become uncomfortable and may consider making changes to their investments. Anytime we have a significant concern, it is essential we take a step back and assess the situation with the proper perspective.
Volatility, while uncomfortable, is a normal and natural part of stock markets. It has always occurred, and we can expect it will continue to occur. Volatility is the price investors pay for equity-like returns. But that doesn’t mean it is easy
Whenever we see bold headlines and declining markets, we can become worried, anxious, and even fearful. These emotions can influence us to make unwise investment decisions.
Therefore, one of the best ways to survive volatility is to simply choose to not look.
Paraphrasing Warren Buffett, ‘The market is an efficient mechanism that transfers wealth from the impatient to the patient and disciplined investor.’
We can best survive the occasional storms of market volatility by mentally preparing for it to occur, ignoring it when it occurs, and exercising patience and discipline during tough times.
If you’re considering working with us here at Mosaic, we invite you to learn more about who we serve and how we help them. You can also contact us with any questions you have.
By Marcus E. Ortega, ChFC, RFC | Investment Advisor Representative | CEO of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©The Behavioral Finance Network. Used with permission.
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