Turning Volatility Into Opportunity

It is September, believe it or not 2020 will soon be over. I’m sure some of us believed this year would never end. Before you know it you will be seeing Christmas commercials, we will blink and 2020 will be gone.
This has been a tough year for most, if not all of us.
In the last few weeks we have seen volatility return to the markets.
September especially, is not usually a friendly month to investors. In an already volatile year, how can we use volatility as an opportunity?

1. Invest Regularly

You will hear me say this often, but it is true. One of the best ways to use volatility as an opportunity is to invest on a regular basis. Truth be told, no one has a crystal ball. Knowing exactly when to get in and out of an investment is extremely hard to time. Regular investing insures that you will be investing in all stages of the market. This helps you buy fewer shares when markets are high and more shares when markets are low.

2. Transition Money Back In At Lower Points

Many clients we know chose to take some investments off the table heading into 2020. As we continue to see volatility in the market, you can use those low points to slowly transition money back into the market. You can choose to do this at sporadic points in time, or just have a plan to transition the funds back into the market each month over a series of months. Since timing the market is difficult at best, this is a great strategy to turn volatility into opportunity.

3. Rebalance

Since March, many investments have regained losses, or are positive for the year. If after this years downturn you feel that you want to start scaling back on risk, perhaps now is a good time to consider that. If your portfolio as a whole is up it would be a good time to review risk and potentially rebalance. You may have some investments that have not fully recovered, that’s ok. We can look at the ones that have and transition those into something safer.

Conclusion

These are conversations we would love to have with you. We can help you implement any of these three strategies. As we continue to walk through this time, I am available to chat and help you make the best decisions. We want to help turn this years volatility into an opportunity for you!