Market volatility is not uncommon during events of crisis in the world, so keeping a level-head and remaining focused on your future is the key to staying financially afloat.
What is unfolding in Ukraine is extremely troubling. As Russia presses its military advantage, it is inspiring to see Ukrainians defending their country. And while the images of fleeing refugees and bombed out maternity wards create strong emotions, as your financial advisor, we’re here to help you keep those emotions in check as it relates to your financial planning.
Markets were volatile prior to the invasion and have become even more so over the past few weeks. As we monitor the situation closely, nobody can predict market moves. We’ve seen broad selloffs followed by huge rallies – sometimes within the same trading session!
For more information regarding Russian exports and its impact on the economy, watch this video here!
Volatility will most likely continue, at least for the short term, as investors weigh the impact of rising inflation, energy prices, supply-chain disruptions, and interest rates. Signs of escalation or de-escalation in Ukraine will continue to move the indices.
Amongst the uncertainty, what we do know is that markets are resilient. In fact, history tells us that major geopolitical events tend to have limited impact on markets after six to 12 months. So, sticking to your investment strategy may be the best approach. As quickly as markets fall, they can also go back up.
We are true believers in the resilience of the American economy. We also feel that the underlying strength of today’s economy still bodes well for overall growth. This doesn’t mean that we are passive. We are taking measured steps to rebalance portfolios where necessary and doing some tax-loss harvesting if appropriate.
In uncertain times, our highest priority is helping our clients keep emotions out of investing and ensuring you remain focused on your long-term financial goals. We are on top of the situation and will continue to monitor events. Please do not hesitate to reach out to us at California Retirement Advisors with questions, concerns, or for some reassurance. We are here to support you and your family; contact us to speak to a financial advisor today.
By Christian Cordoba
CERTIFIED FINANCIAL PLANNER™
Founder, California Retirement Advisors
For more information on taxes and the economy, check out these other CRA articles:
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Inflation Is Creeping into Personal Finances - Here's How — California Retirement Advisors (cradvisors.com)
The Stock Market and the Economy Are Not the Same: A Guide to Understanding the Difference — California Retirement Advisors (cradvisors.com)
Investment advisory services offered through Mutual Advisors, LLC DBA California Retirement Advisors, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. CA Insurance license #0B09076. This content is developed from sources believed to be providing accurate information and provided by California Retirement Advisors. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. California Retirement Advisors, nor any of its members, are tax accountants or legal attorneys and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.