Last year markets experienced mostly sunny skies, calm seas and had plenty of wind in its sails. As we move further into 2018, many have been reminded that such tranquility doesn’t persist forever and waters, from time to time, do get choppy.
When constructing portfolios, we often recommend a mix of investments- those that perform well when skies are clear and seas are calm and others that provide stability during times of cloudiness and rougher waters.
While recent market volatility and headlines can no doubt cause angst, we believe markets are experiencing a return to normal rather than entering hurricane churned seas.
As we noted in our most recently quarterly commentary, we believe the U.S. economy remains on firm footing. Absent a surprise, this means that any volatility will likely be more temporary rather than longer lasting. Our belief remains that unless you have experienced an event that would impact your financial plan, a change in investment approach is not necessary at this time.