How Can You Address Market Volatility?

Does the recent market volatility have you feeling uncomfortable? If the answer is yes, do not worry it is completely normal to feel that way. Volatility is usually accompanied by increased TV and social media coverage designed to feed the frenzy and help heighten your fear. At Guardian Financial Partners we are committed to helping you preserve your assets and protect your lifestyle. We are confident our investment management platform and process will help better prepare you and your money to navigate the increased market volatility(risk). Market volatility is part of investing and how well we help you prepare yourself and your portfolio can make all the difference. This month’s newsletter includes this quarter's GFP market commentary as well as ideas on how you can to deal with the increase in volatility and uncertainty. 

The GFP Quarterly Market Commentary

U.S. and global stocks dropped sharply in the last quarter, capping a year marked by turbulence and losses across most asset classes. Among investors’ worries are signs of a global economic slowdown, exacerbated by ongoing Federal Reserve monetary tightening, U.S.-China trade tensions, and political uncertainties in Europe (Brexit, Italy) and the United States.

After tumbling 7% in October and then stabilizing in November, U.S. stocks fell again in December as investors reacted negatively to the Fed’s language surrounding its 25-basis-point rate hike.  While the Fed’s updated forecast implied one fewer rate hike in 2019 than previously communicated (two instead of three), Fed chair Jerome Powell gave no indication it would ease up on its balance sheet reduction program (rolling off hundreds of billions of maturing assets purchased during quantitative easing), nor that a pause in rate hikes was imminent (although he didn’t rule it out). Click here to read the full commentary. 

You can also find this information and details specific to your accounts(s) by going to the GFP Client Portal by clicking here. 

Revisit Your Plan

Increased market volatility and uncertainty has a way of making the most experienced investors worry and question their investment strategy. Revisiting both your financial plan and investment plan will help alleviate your concerns. At GFP, we take pride in our Dynamic Risk Asset Allocation Management Sleeves (DRAAMS) risk-based investment management approach. Your DRAAMS in conjunction with your personalized Riskalyze® assessment allows us to build a disciplined risk-based investment allocation right for you and your needs. Our True Financial Planning process can keep you grounded and focused on your long-term goals while providing the necessary perspective for handling different market cycles and volatility. We encourage you to review the "success score” of your financial plan and understand what it means in relation to your goals and spending over your lifetime. If you haven't created a financial plan with us then this is the time to do it. We promise it will help bring calm and comfort, especially during unsettling times.  Contact us to start a plan or review your existing one. 

Focus on What You Can Control

When markets get volatile it is normal to want to make a change in pursuit of “more control.” The reality is it’s impossible to control what will happen next in the markets. We recommend you focus on what you can control. For example, we recommend reviewing your spending habits and budget as part of normal "New Year" planning but we also know people typically pay more attention to where their money goes when markets feel uncertain. Use this time to review your budget and look for areas to save money. We have created The True Financial Planning Worksheet to help you with this process. Click here to download a copy. 

Have questions? Please contact us at 949.771.2969 or visit us at www.GuardianFinancialPartners.com