The stock market had a surprisingly low amount of volatility in 2017 as compared to the history of the market. The biggest pullback that the market had at any point in 2017 was just negative three percent. That is an unusual number given that it is not uncommon for the market to pull back into the double digits in a normal year. Since we know that the volatility was so low this past year, perhaps it goes without saying that most expect it to be a lot higher in the year to come.
That may all turn out to be true, but what we all really want to know is what we should do to prepare for it. Fortunately, the folks at HCR Wealth Advisors have some answers to that question as well.
HCR Wealth Advisors is a registered investment advisory and wealth management firm that seeks to provide their clients with the best possible information that they can about how to invest their money. They are not just making random or off the wall suggestions. Rather, they have taken their time to craft specific strategies for each of its clients. Every person has unique challenges and goals for their money, and that is always important to remember when receiving financial advice. However, there are some general rules that apply to all of us when we have some insight into what we expect the broader market is likely to do.
One of the things to do when the market is expected to have more volatility to it is to diversify your funds. You do not want to be too stacked in any one sector or industry. When you have too many eggs in one basket then you put yourself at risk of losing a lot of money all at once.
Another thing to remember from @HCRwealth is not to panic. While we had very calm waters last year, that is not the norm. It is far more common to see bigger swings, so prepare yourself for that possibility this year by just not panicking when things get a little wild.
HCR Wealth Advisors is not affiliated with this website.