Investors prefer stability in the market. Volatility can bring far too much upheaval. A stable market that provides modest growth from year to year certainly comes with benefits. Stability, however, cannot be guaranteed. As a professional from HCR Wealth Advisors would likely note, the market experiences ups and downs. At certain times, the market even experiences volatility. Dramatic ups come with dramatic downs since publicly traded companies can suffer both unexpectedly significant losses and gains.
Volatility isn’t automatically a negative. If the market skyrockets up, the value of an investor’s holdings increase. Investors address market volatility differently. Some choose to strategically exit the market or transfer assets to less-risky endeavors when a market decline occurs. Many investors do nothing at all. They plan on keeping capital in the markets for the long-term. Lacking the desire to buy, sell, and trade, they opt to hold onto investments for years and years.
2018, however, seems to be an atypical year. Investors may be wondering how to address the year’s volatility. Overall, 2018 seems to be a year the market experiences unusually significant ups and downs. Anyone who followed the Dow Jones average surely noticed the market rising and declining hundreds of points throughout the year. During such odd times, clients look towards HCR Wealth Advisors for assistance to deal with risk.
Indeed.com mentioned that various factors seem to be contributing to the volatility. The looming cloud of tariffs certainly contributed to these increases and decreases. Threats of tariffs often drive down the market. Once it seems tariffs aren’t likely, the market bounces back. Also, the technology sector seems to be driving the market, too. While 2017 was fairly stable, various factors indicate this isn’t the case with 2018.
Interestingly, the current data landscape allows people to research a tremendous amount of information. Reviewing information can lead to making better-informed financial decisions. Experience, however, becomes necessary to truly make sense of the information the person reads.
Many investors draw from the experience of professionals working for the registered investment advisory (RIA) firm named HCR Wealth Advisors. In addition to helping clients, HCR Wealth Advisors also puts effort into educating the public about financial and investment matters. See HCR Wealth’s work history.
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