the conflict involving Iran<\/a> are real, but not unusual in the bigger picture of investing.<\/p>\nRead more:<\/p>\n
\u201cThere\u2019s always a reason to sell,\u201d Rodych said. \u201cBut if you\u2019re a long-term investor, this kind of volatility because of macroeconomic or political factors should not be the reason why you\u2019re necessarily exiting or rebalancing or changing your portfolio approach.\u201d<\/p>\n
Rodych said the past week had brought the sharp back-and-forth movement that tends to makes investors nervous.<\/p>\n
\u201cWe usually talk about the concept of market volatility, and we\u2019re certainly seeing that,\u201d he said. \u201cAnybody that\u2019s been following the markets, they\u2019ve probably been seeing a combination of some jitters, where we\u2019ll get a positive day followed by some negative days, and bigger swings, more than a percentage point either way.\u201d<\/p>\n
For younger investors, he said the best policy is to keep the long-term time horizon in mind.<\/p>\n
\u201cIf you\u2019re a long-term investor, volatility is part of the game. It\u2019s risk and reward, right? There\u2019s that trade-off,\u201d Rodych said.<\/p>\n
The financial adviser said investors who felt uneasy looking at their accounts should use that feeling as a sign to review their overall plan, rather than a signal to make quick, emotional decisions.<\/p>\n
\u201cIf you\u2019re uncomfortable with the amount of volatility you\u2019re seeing, then it might be a time to reevaluate your financial plan,\u201d he said. \u201cAre you well diversified? Do you have diversified global exposure?\u201d<\/p>\n
He said that advice is especially important for people nearing or past retirement, because they may be drawing income directly from their portfolios.<\/p>\n
For those investors, one of the biggest \u201cdon\u2019ts\u201d was pulling money from the wrong place at the wrong time.<\/p>\n
\u201cIf you are withdrawing from a portfolio, ideally equities or stock market participation, that\u2019s probably not where you want to be withdrawing right now, when volatility starts spiking,\u201d Rodych said.<\/p>\n
Instead, he said retirees and near-retirees may want to lean on safer, more liquid holdings while markets settle.<\/p>\n
\u201cThis might be a time to be using money market or HISA high-interest savings account type positions, and withdrawing from those while we let the volatility settle in the stock and the bond markets,\u201d he said.<\/p>\n
Rodych also warned against thinking this kind of turmoil is unprecedented. He pointed to past market shocks, including the COVID-19 crash in 2020 and major tariff-related volatility last year as reminders that markets have been through times of uncertainty before.<\/p>\n
\u201cWe experience volatility in the markets, in our societies, in our politics, in our economics, and this is just the part of investing that we have to work through,\u201d he said.<\/p>\n
In the end, Rodych said the clearest dos and don\u2019ts are simple: don\u2019t panic, don\u2019t make knee-jerk changes, and do make sure your portfolio actually matches your goals, timeline and tolerance for risk.<\/p>\n
\u201cIf folks are looking at their portfolio, they\u2019re seeing this volatility, and they\u2019re comfortable with it, that means that they\u2019ve got a good plan in place,\u201d he said. \u201cThey\u2019re feeling well diversified for the different scenarios that can come along.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Global tensions have plenty of investors watching their portfolios a little more closely this week, but one Saskatchewan…\n","protected":false},"author":2,"featured_media":518917,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-518916","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/518916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=518916"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/518916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/518917"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=518916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=518916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=518916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}