World Events & Volatility

Just some attachments and thoughts about world events and volatility.

One attachment is from The Hartford and walks through negative media headlines over the past 50 years (PDF) and the second shows headlines and returns from 1970-present.

Please note these attachments could prove to be overly simplified as we never know what will happen when you have a rogue regime like Russia impacting world events. Also, we have a Federal Reserve set to raise rates to fight inflation and a American political atmosphere that is toxic. My gut tells me we are going to be fine in the long run, but you never know!

In these types of situations, I like to think about what this means for our clients. Two thoughts:

  • Volatility will likely continue so focusing on the client’s short, medium and long term goals is even more important.  Having money invested for each set of goals will allow the client to feel more comfortable during uncertain times. 
  • The need to be vigilant regarding cyber security with our clients.  As the US and the world levees stiffer sanctions, Russia could retaliate with its state sponsored cyber units against US banks and financial institutions such as Schwab, TD, Fidelity, Vanguard, Merrill Lynch, Morgan Stanley, Wells Fargo, etc.

Buckle up for the next few months cuz it may be a bumpy ride!