CARLSBAD, Calif. (KGTV) — The Dow Jones closed out a turbulent week with a rebound but still suffered its biggest weekly loss since January of 2016.
The volatility is causing some investors anxiety that largely hasn’t been felt in the past year.
“These are the times reminding us what volatility is and how it feels, and it’s hard, hard emotionally. You need to have a plan so you don’t make mistakes,” said Jason Labrum, Founder, and President of Labrum Wealth Management.
Labrum says volatility is supposed to happen and that it’s a natural part of the market.
He advises people to plan and prepare before investing.
“Being emotional and changing because of the market is never a good thing. Sticking to your discipline and staying your investment is the way to succeed. But you’ve got to make sure you have the right investment portfolio in the first place,” said Labrum.
He has clients ask themselves three things:
- Why am I investing? What are my goals?
- How much volatility am I comfortable with?
- What’s my investment philosophy?
Labrum says figuring out a plan ahead of time makes volatility more bearable.
“Stay tried and true because the best days in the market are always after the worst.”
Labrum says thousands of variables affect the market every day but he believes the biggest factor right now is fear of potential inflation and rising interest rates.
Labrum is the host of the podcast Financial Detox and author of the upcoming book Financial Detox: How To Steer Clear of Toxic Advice, Achieve Financial Independence, and Manage Your Wealth for Maximum Impact.
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