Making Sense of Market Volatility
By Marcus Whitfield, Director of Investments, CFA
Market volatility is uncomfortable, but it is also a normal feature of investing, not a sign that something has gone wrong. Historically, markets have experienced meaningful pullbacks in the majority of calendar years, even in years that ultimately finished with positive returns.
The most common investing mistake we observe is not a bad initial portfolio — it's an emotional reaction to short-term volatility that turns a temporary decline into a permanent loss. Having a written plan in advance, one that already accounts for the likelihood of volatility, makes it easier to stay the course when headlines get loud.
This does not mean ignoring risk. It means sizing risk appropriately for your time horizon and goals before volatility arrives, so that when it does arrive, the plan has already done the work.
This content is for informational purposes only and does not constitute personalized investment, tax, or legal advice. It is not a recommendation to buy or sell any security. Past performance is not indicative of future results, and all investments involve risk, including possible loss of principal. Meridian Capital Partners is a fee-only fiduciary; please see our Form ADV Part 2A for a full description of our services and fees.
Marcus Whitfield
Director of Investments, CFA at Meridian Capital Partners.