Insights

Consider these five personalized investment strategies to help you move forward with confidence during uncertain times.

Market volatility and uncertainty can leave investors feeling like they are on an emotional roller coaster. Even so, the biggest challenge for investors at a time like this is inaction. To borrow a timely quote from U.S. president Franklin D. Roosevelt “there are many ways of going forward, but only one way of standing still.” We need to avoid the kind of paralysis that can come from fixating on the difficult and daily news to keep moving forward.

First, let’s understand what caused this volatility and what we can expect in a recovery. Then, let’s take a look at what we can do as investors in the meantime.

The Cause and Recovery: Taking Stock

We’ve experienced not one but three “black swan” events in 2020 so far. First, the coronavirus, which spread quickly across the globe. Second, non-essential businesses closed in support of physical distancing which, in turn, stalled most of the world’s economies. Third, the dramatic collapse in oil prices, which have impacted oil-producing nations like ours.

The world as we know it has changed – from the way we work, to how we school our kids right through to how we interact with our loved ones. Unemployment rates are rising rapidly and governments have rolled out significant support plans to buffer both the economy and its people. Throughout this time, markets have fluctuated with incredible volatility and we don’t know if or when a second wave will impact us.

Now, as economies around the world take tentative steps to re-open, we’ve turned our focus to the recovery. All eyes are on the number of new COVID-19 cases, the speed of testing, the apex of the curve, and the eventual hope for a vaccine. Concurrently, in the investment world, economists and media outlets are discussing the shape of the equity market’s recovery. Will it be V-shaped, U, W, or even L-shaped?

Irrespective of what transpires, volatility is a normal part of long-term investing and can create attractive opportunities. As you evaluate your personal and family circumstances, there are planning strategies that can help you rise above the daily news cycle, weather the storm, and take back control of your financial future.