“Uncertainty” has been a common theme recently, particularly with the challenging and historic pandemic affecting so many people. We have been encouraging individuals and families to take control of what they can—ensuring that they have a solid plan in place for their future—despite being surrounded by things they can’t control.
Now, let’s focus on this same theme specifically related to market and investment uncertainty.
Daniel P. Ray, Credit Union Trust’s Investment Officer, offers the following insights/recommendations:
1. Restraint. Resist the urge to make changes to your portfolio based solely on recent market activity. While past performance is no guarantee of future results, there are countless historical summaries that demonstrate the cost of trying to time the market and missing the “best days.”
2. Resources. Make sure you have a trusted, professional advisor who truly understands the market (and you aren’t relying on a distant relative who dabbles in day trading or a non-professional who happens to appear in your Twitter® feed). Consider:
a. Is your advisor in contact with you?
b. Are they answering your questions and providing relevant guidance?
c. Whose best interests do they have at heart?
d. …Is it time for a new advisor?
3. Balance. Portfolios can be built to minimize the impact of volatility. While risk is a regular part of investing, a well-constructed portfolio appropriately balances your priorities and a reasonable comfort level with volatility.
4. Knowledge over Emotion. Take a deep breath. Look at the situation with a long-term lens. And keep emotions from guiding your decisions.
If you have questions, or are interested in understanding more about how a professional fiduciary with a professional investment manager can make a difference in your own situation, contact us.
Credit Union Trust does not guarantee investment results in its fiduciary accounts. Where non-deposit investment products are used, such investment products are not insured by the FDIC, are not deposits or other obligations of Credit Union Trust and are not guaranteed by Credit Union Trust, and are subject to investment risks, including possible loss of the principal invested.