Mind Games: Inflation, War, & Market Concerns
Two major components of current market volatility are rising inflation and the conflict in eastern Europe. Such concerns may lead investors to consider selling out of the market and going to all cash until the volatility calms down.
While such a decision may provide some emotional relief in the short-term, it may not be financially prudent for the long-term. Whenever you go to cash, you leave the investment realm and become a speculator. Your financial plan no longer guides your decisions. You must then guess what to do next, such as when or if to re-enter the market.
At Mosaic Financial Associates, we believe time in the market is more important than timing of the market. Patient and disciplined investors stay the course of their convictions. The stock market has provided many examples of volatility in recent years, such as inflation fears in 2018 and several global crises (2015, 2016, 2019). Living through increased uncertainty and declining markets can be difficult. But you are not alone.
Should you have any questions or concerns, please don’t hesitate to reach out to us. At Mosaic Financial Associates, we believe the best course of action for investors is to focus on the long-term view, maintaining diversified portfolios of investments that anticipate a broad range of outcomes.
While concerns abound, it is important to recognize that you are in charge of what you do next. Whatever you choose, be sure to counsel with us before taking any action. This is what we are here for!
By Marcus E. Ortega, ChFC, RFC | Investment Advisor Representative | CEO of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©2022 The Behavioral Finance Network. Used with permission.