5 steps to deal with market volatility
By Kirsten Hastings, 7 Feb 18
With low volatility having been the norm for nearly three years, the sharp drop experienced by global markets earlier this week awakened some fight or flight responses. AJ Bell offers five lessons to help investors cope with market volatility.
“Legendary investor Warren Buffett uses the dictionary definition of risk, namely ‘the possibility of harm or injury’ and in a financial context this means losing money, your willingness to take that on and ability to withstand it.
“If the market gyrations of earlier in the week made you feel uncomfortable then it is possible you have unwittingly taken more risk in your portfolio than you really feel comfortable with.
“It may be worth sitting down and assess where you do feel comfortable and where you do not, to ensure your portfolio is properly set so that it fits with your overall strategy, target returns, time horizon and appetite for risk.”
Tags: AJ Bell | Investment Strategy | Volatility
