Broker Check
An Open Letter to Clients on Market Volatility

An Open Letter to Clients on Market Volatility

March 19, 2020

To our valued clients, friends and family, 

In light of recent worldwide events which have had significant impact on the markets, we wanted to remind you that we are here to support you as we navigate these times of uncertainty. 

Remember, knowledge is power, and we’re committed to equipping you with the tools and information you need to weather this storm.

Understanding what “volatility” means in the financial markets is crucial to withstanding times of market movements. As a basis, when markets fluctuate dramatically, they are in a period of instability. While the specific causes are countless, and at times extreme, the root of nearly all volatility is uncertainty. While market fluctuation is unavoidable, there are strategies that may help avoid long term negative impact on your portfolio.

A key concept in sustaining your portfolio through any market situation is having a clear understanding of your risk tolerance for market fluctuations. Appropriate asset allocation and diversification can diversify your portfolio and deliver a broader safety net during phases of financial adjustment. Also, keep in mind, market variability doesn’t automatically equal bad news, it can equal opportunity. Though it may be natural to focus on declines caused by instability, it’s important to remember that market fluidity can also offer opportunity for future growth.

Enduring ambiguity and economic changes without reacting emotionally can be challenging, particularly the kind we are currently experiencing. Market cycles are normal and expected. Markets have proven resilient over time and it’s important to maintain discipline and focus on your long-term goals.

Since Associated’s investment management division started in 1989, we have been through numerous major market declines. If you’re feeling concerned about the market, let’s connect. 

We are always happy to revisit your goals, review your risk tolerance and ensure you’re on track. 

Wishing you and your family the best during this time,

The Associated Team