Risk is an inevitable component of investing and market volatility is one of the factors that create investment risk. A large part of dealing with risk is working with an advisor who can help you manage your expectations and guide you through the ups and downs of a turbulent market. There is no single, universally correct strategy for risk. Every strategy is subject to subject to your individual financial life needs. Consultation with an advisor can help you understand what approach works best for your situation.
Beyond setting realistic expectations, here are 8 potential strategies — 4 long-term and 4 short-term — for managing volatility in your investment portfolio.
Investing experts used to advise removing all emotion from investment decisions. However, as humans, that simply isn’t possible. “Behavioral finance” is a discipline that studies how human beings actually respond to things like risk, volatility, and loss. For example, our grief over a loss is likely to be twice as strong as our elation over a gain. Understanding how we are wired as humans, along with our individual personalities, helps us choose risk strategies that support our lifestyle and peace of mind.
No strategy comes without risk. It’s a good idea to discuss your attitudes toward risk with a United Capital financial advisor who understands how important they are. Your advisor can help you manage investment expectations and risks in the ways that suit you best.
United Capital Financial Advisers, LLC (“United Capital”), is an affiliate of Goldman Sachs & Co. LLC and subsidiaries of the Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management and financial services organization. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions.
The information contained in this blog is intended for information only, is not a recommendation, and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances. This blog is a sponsored blog created or supported by United Capital and its employees, organization or group of organizations. This blog does not accept any form of advertising, sponsorship, or paid insertions. Certain authors of our blog posts may be influenced by their background, occupation, religion, political affiliation or experience. It is important to note that the views and opinions expressed on this blog are that of the owner, and not necessarily United Capital Financial Advisers. As a Registered Investment Adviser, United Capital does not allow any testimonials on their blog, and any comments deemed as such United Capital will remove.
United Capital does not offer tax, legal, or accounting advice; therefore all articles should not be taken as such. Readers should obtain their own independent legal, tax or accounting advice based on their particular circumstances. All referenced entities in this site are separate and unrelated to United Capital. Any references to any specific commercial product, process, or service, or the use of any trade, firm or corporation name is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by United Capital.