Read what Salim has to say...
Volatility is all but a given in investing. Markets will rise and markets will fall. It’s a truth well borne out so far in 2016. U.S. stocks had plunged nearly 10% in the first six weeks of the year, before erasing those losses entirely in the five weeks that followed.
Investors will naturally look for the source of the market pain, and wish it away. In reality, however, it is often an array of forces and counterforces, some not always entirely clear, that lead markets to seesaw. And so it has been in 2016.
The good news for investors is that the full global resources and risk management capabilities of BlackRock are sharply attuned to these variables and prepared to make portfolio adjustments, if and as needed, with your interests in mind.
But perhaps one of the wisest moves is to build long-term downside shock absorbers into your broad investment portfolio. Whether it’s exposure to a widely diversified global multi-asset product, or a strategy specifically designed to mitigate volatility, having these bastions in your portfolio, in good times and in bad, can make all the difference in the long run.
Equally important in navigating volatility is maintaining a long-term focus. If you accept that what goes down will (eventually) go up, which history has shown us to be true of financial markets, then being a long-termist has its rewards. We encourage a long-term vision for ourselves, for the companies in which we invest and for you as you pursue your lifetime financial goals.
Head of U.S. Wealth Advisory