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Now that the presidential election is over, there’s speculation and uncertainty about how the markets will react. Regardless of your feelings and fears about the outcome, it’s important to know that presidential elections alone won’t make or break the market.
Uncertainty creates unease among investors, which leads to greater volatility in the market. But volatility should be embraced since it provides the seeds for opportunity.
qplum helps families prepare for volatile times using a three-pronged approach:
- First, stick to your plan. Whatever risk levels you set for your portfolio, don’t let emotions get the best of you.
- Next, enlist the help of volatility control. For qplum, this means reducing your allocation of risky assets to lower risk assets, and lowering your allocation to products whose expected returns are decreasing relative to their risk.
- Finally, control your drawdown. Reallocate or liquidate your holdings gradually instead of all at once. Next, re-enter the market sooner to avoid missing opportunities you might not have anticipated, especially when emotions or fear risk clouding your judgment.
If you're interested in learning more about investing and how your investment portfolio should be reflective of real time events, visit our investment library here.
qplum can help you make a plan before you really need one to protect yourself and your family.
To learn more about our investment options for busy families go to qplum – Family Financials.
Mansi Singhal is the co-founder of qplum, an online quantitative wealth management service that helps families with smarter financial decisions. This is the first of a series of blogs designed to help parents plan for their future. Questions/feedback, email firstname.lastname@example.org.