When the market appears to become more volatile, it’s understandable that you have questions. These periods of extra uncertainty and added media coverage often cause investors to make decisions without thinking about the long-term state of their portfolio. When it comes to being proactive in trying to avoid loss, it’s important to paint a clear picture of the market.
As we’ve had these discussions internally, we decided to put together a couple of resources to help you talk with our advisors. This short video and more detailed Issue Brief help address many common questions.
In a short video, David Booth, Eugene Fama and Ken French share their Perspectives on Market Volatility. It quickly goes through some of the biggest challenges financial advisors face when the market changes. Then, David Butler addresses why staying disciplined in investing becomes even more important during stretches of volatility.
For a more in-depth look at market changes, refer to “Recent Market Volatility” – an Issue Brief prepared by Dimensional for you, our valued client. Inside, they take a look at some of the most common, and often most difficult, questions many clients have as they begin to wonder how market changes impact their own investments. Through the answers, they revisit some of the most essential principles of investing to reassure investors that changes are a natural part of capital markets.
Together, these resources should help keep us thinking and focused on the conversation. Instead of talking about how best to react to today’s performance, we can work together to ensure that planning for the future is always the goal.