How to Handle Market Volatility

Patrick Sgroi President
At the end of September, we we’re talking about the S&P 500 being in the longest Bull Run in its history. However, since the beginning of October we’ve seen volatility enter the market once again. October has historically been a volatile month for the financial markets and thus far it has not disappointed in that regard. We see this as a normal cleanse that hasn’t been happening as frequently but moving forward we’re still optimistic about where we’re going. In the meantime, here’s some tips to handling the volatility of the market.

Follow your plan

Don’t let your emotions drive your investment decisions as that may prove costly. By staying in-line with your predetermined plan and understanding your investment timeframe it should allow you to get through the volatility. Successful long-term investors know that the market has a powerful upward bias and align themselves accordingly.

Avoid the ‘crisis’

As humans, we’re hardwired to feel drops in market value more than equivalent gains. This makes sense with all the media’s coverage when the markets’ value declines. The coverage makes you feel like there is a sense of impending doom. To protect your portfolio, and your sanity, we recommend not watching the market daily. Instead check your portfolios monthly, quarterly or annually. Continue to focus on your plan and your long-term goals.

Seek help

If you feel anxiety or can’t sleep at night thinking about your portfolio, then you’re probably not doing what’s best for you. Don’t hesitate to talk to a financial planner. They can give you professional advice, go over your financial plan and help you determine any steps you may need to take. Also by talking to a financial planner with fiduciary responsibilities, you will be provided with advice that is best for you; while taking the emotion out of your investing.
For more information on handling market volatility listen to my interview with Clay Moden on 106.5FM WYRK. Also if you need assistance with your own portfolio, call our office to set up an appointment.


You can catch our weekly Plan.Protect.Invest. segment live on WYRK 106.5FM at 7:20am every Wednesday. Each week we will have a Sgroi Financial planner on with Clay Moden and the WYRK morning show to discuss financial topics to educate and help their listeners. Since 1971, Sgroi Financial has proudly served Buffalo, NY and the Western New York community from our West Seneca location.
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