Financial Planning Fridays #156: Stock Market Volatility
Market swings have felt more unpredictable lately, and the data backs that up: this decade already has more days of 1% or larger moves than any other decade on record. This video explains how a disciplined rebalancing strategy, selling a bit of what's outperformed and buying more of what's lagged, turns volatility into opportunity rather than a source of stress.
Market swings have felt more unpredictable lately, and the data backs that up: this decade already has more days of 1% or larger moves than any other decade on record. This video explains how a disciplined rebalancing strategy, selling a bit of what's outperformed and buying more of what's lagged, turns volatility into opportunity rather than a source of stress.
Key takeaways
- This decade has already seen more days with 1%-or-greater market swings than any other decade in recorded history, even before it's over.
- Rebalancing means periodically adjusting a portfolio back to its target mix, a disciplined version of buying low and selling high.
- A rebalancing strategy removes emotion from investing and systematically takes advantage of short-term swings without trying to time the market.
- Presilium continuously monitors and rebalances client portfolios to help keep clients on track through volatile periods.
Hi friends. Have you noticed how unpredictable the stock market feels lately? You're not imagining it. This decade has already experienced more days where the market has moved up or down by 1% or more than any other decade in history. And we're only halfway through it.
Volatility is no longer the exception. It's the new normal. And while that may sound unsettling, there is a silver lining. Volatility creates opportunity if you have a plan. That's why now more than ever, it's critical to have a disciplined rebalancing strategy in place.
Rebalancing means regularly adjusting your portfolio back to its target mix, selling a little of what's done well, and buying more of what's temporarily underperformed. It's the classic buy low, sell high approach built right into your long-term plan.
In highly volatile markets, this discipline helps you stay grounded, takes the emotion out of investing, and systematically takes advantage of short-term swings without trying to time the market.
At Presilium, we're constantly monitoring your portfolio and rebalancing as needed to help you stay on track through every up and down. So, while market volatility may be here to stay, so is your strategy. And that's what turns uncertainty into opportunity. Thank you, and I look forward to talking with you next Friday morning.
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