The Market Moves Forward In Spite of Headlines

by Financial Design Studio, Inc. / December 1, 2017

The Market Moves Forward In Spite of Headlines

Every day brings a new headline story that we may or may not expect.  It’s often the expectation or lack of it that causes the volatility we see in that day’s market performance.  But your decision to invest can be made in spite of the news story of the day.

Election Interference

One recent story has been the investigation into election interference.  As more news has surfaced about recent developments, the market has reacted with volatility that the progress made may come to a screeching halt.  It is very important that the investigation proceed to find clear answers.

Investors reacting by selling or buying protective holdings aggressively can be reminded of one important detail.  The Vice President, Mike Pence, generally shares similar economic philosophy with President Trump.  If a situation were to arise where Trump were removed from office, we believe that much of the economic and tax agenda already started would continue forward.

Not every headline story has a potential outcome that would be as comforting.  It is important to take a step back from the noise to analyze and consider the effects of the news and your actions of response.  Ignore the noise, but consider the facts.

What Does This Mean For You?

For this very reason, it’s important to always stay diversified even in a roaring bull market.  If everything in your portfolio is increasing or decreasing at the same percentage then you are not diversified.  This means that while most of your portfolio is increasing on a good day of market performance, you have other holdings that only perform o-k.  But it’s those that only perform o-k on a good day you expect to increase on the bad days, serving to protect your portfolio.  This is diversification!

If we can help you analyze your portfolio to gauge your diversification please contact us!


FDS Economic Cycle

Ready to take the next step?

Schedule a quick call with our financial advisors.

Recommended Reading

social security increase

Social Security Cost of Living Increase in 2022

High inflation is going to lead to a significant Social Security Cost of Living Increase in 2022. How much of an increase can you expect, and how does this impact the Social Security system? We tackle these questions and more in this week's post.

Is the Bear Market Over?

Markets have rallied off the bottom causing investors to ask, "Is the 2022 bear market over?" We look at what's happening with the economy and what the bond market is telling us about a potential recession. Then we dive into different types of bear markets and give our perspective on what to do if the...

Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.