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The Benefits of a Volatile Stock Market

The Benefits of a Volatile Stock Market

January 10, 2022

Let’s be honest: NO ONE likes to see a dip in their personal financial accounts – even financial professionals. Just like everyone else, I too have quarters when my statements come back lower than they were the previous quarter.

Who wants to see that??

If you’re new to investing, this can be a gut-check moment. Even if you’re a seasoned investor, stock market volatility can still trigger some anxiety.

But what if I told you that changes in the stock market can be a GOOD thing?

Yes, I’m a “glass half-full” kind of person. But even if you’re not, the data doesn’t lie. As long as your assets match your risk tolerance and time horizon, you’ll be just fine.


Here’s what you need to keep in mind when you see a stock market dip:

1. Investments are on sale...and who doesn’t like a good sale?

2. Things don’t only fluctuate low – they fluctuate high as well (remember, I’m “glass half-full”).

3. Changes in the market help you to assess the amount of risk that you are personally willing to take for the long run.  I have had many clients tell me that they are moderate investors. Then, when we look at their portfolio and how they have handled past market fluctuations, we discover that they are really moderately aggressive or conservative. Moderate means different things to different people.  It is important to figure out what it means to you.


Take Control of What You Can 

When things start feeling “out of control” to you, it’s important to keep in mind what we can control.

You can’t control politics, you can’t control COVID, and you can’t control how a specific company will behave.

You CAN control how much you save. You can control the risk tolerance of your portfolio. You can control if you stay the course or change courses. You usually can control when you will need the money for your retirement or next home purchase or children’s education. 

And remember that we’re here to help. If you’re looking for basic explanations as to why the market is behaving the way it is, we’re happy to answer those questions. Want to dig into more analysis? I’m a numbers geek, so we can take a deep dive together.

If you aren’t sure how much risk you’re taking with your current portfolio, feel free to use our FREE PORTFOLIO RISK ANALYSIS and we’ll be happy to review your risk with you.


Cecilia Beach Brown Is a registered representative offering investment and advisory services through Lincoln Financial Securities Corporation, Member SIPC. Advisory Services are offered to residents of Maryland. LFS and its representatives do not offer tax or legal advice. Please see your tax or legal professional regarding individual circumstances. C Beach Brown, LLC, Pilot Financial Advisors and Lincoln Financial Securities are separate entities. LFS-4143087-011022