When our grandkids hop into our vehicle, they know that Pop Pop or Grammy isn’t going to start driving until we hear the “clicks” of their seatbelts being fastened. It’s our safety policy to protect against the unknown.
In investing, there are times when “wearing your seatbelt” is also a good idea. We believe this may be one of those times.
Recently, the markets have shown signs of being more volatile, or turbulent, than recent years. This could be caused by Trade Wars with China, an inverted yield curve, economic unknowns, or a tense and uncertain political divide, just to name a few.
However, if your investment portfolio is well aligned with your plan and your time frame, volatility is not to be feared, but embraced! Volatility over a market cycle can actually enhance your returns.
We have a picture hanging in our office that illustrates this concept quite well.
While short-term volatility can be a bit unsettling, don’t allow it to change your plan or your perspective. Click your seatbelt and ride through it. We will be in the seat right beside you, going along for the ride.