During periods of above average market volatility, or sharp moves in either direction, investors and advisors are likely to wonder if some action might be appropriate or expected. This natural reaction may be exacerbated by an endless stream of punditry and suggested strategies from CNBC and other media outlets.
In most cases, the most appropriate action is no action or, doing nothing. A well structured long term portfolio strategy, that reflect investors’ goals and resources, should have been positioned to withstand market fluctuations. That is not to say that period reviews are unnecessary. Just as regular visits to your physician, while usually not requiring action, are advisable, periodic portfolio reviews can reinforce existing positions and/or call attention to changed circumstances.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA