Many of our client and professional advocates have asked us in response to the market volatility of the first two weeks –

“Is this going to be another 2008”?

Since 2015 was the first time in 7 years that the “stock market” was down and 2016 has started much the same way it leads to the question of “what’s going on?”.

With market volatility as the new normal for investors today, there is one strategy we would like to highlight for investors who are ready to stay the course.

But before we discuss the strategy, let’s talk about…

Today’s Volatile Market Environment

It’s no surprise that volatility is expected to be a semi-permanent fixture in the markets for the foreseeable future. Take a look at volatility over the last decade and over the past year:


What this chart doesn’t show is that, whether we like it or not, emotions tend to drive many investment decisions and this often causes investors to buy high and sell low, which is the very opposite that we need to be doing. Sadly, this often results in lackluster performance. It may be surprising, but the reality is that the “average” investor tended to underperform major asset classes such as U.S. stocks and bonds, as well as the common 60/40 blend by a significant amount, ranging from about half as much as bonds and over 3 times less than stocks. With volatility as the “new normal” today, investors who understand the importance of staying the course have been looking for tools to help them better navigate this landscape.

Eliminating the #1 Mistake Investors Make

Study after study has shown that one mistake costs investors billions of dollars each year, yet investors keep making it. This mistake happens primarily because investors are emotional and overconfident.

The No. 1 investing mistake everyone makes

We react emotionally — and often at the worst times. With stocks, people frequently get caught up in the hype surrounding a stock with a great story. They overlook the risks because they want the story to work out. When the stocks drop they sell, locking in their losses.

How can you get rid of those emotions and sleep at night? Our prescription has three simple steps:


What are your investing goals? Define, them MAKE A PLAN

Just 14 percent of Americans have a formal financial plan for retirement, but three-quarters of those people feel confident their money will last through retirement. If you want to be part of this small, confident group, determine how much retirement income you want by a certain age, and then map an investment strategy to navigate that path. You don’t have to do this alone. Tannery & Company’s Wealth Management’s online financial resources can help.


RISK 58Know your personal risk score.

How much is enough and how much is too much.

What is your actual risk tolerance? Together your investing goals and your risk tolerance are the two largest components that dictate how you should invest for your future.

Are you like many investors who fail to consider the risk your portfolio holds? Chances are you’ll find yourself making irrational, emotional decisions that negatively impact your personal success.

Using our Riskalyze tool, our clients know that we invest their money to meet their Personal Risk Tolerance. Find out your Risk Score now!


If being unsure about your tolerance for risk and you need to define your investing goals sounds like you, please do not hesitate to call us or go to our website and schedule a meeting. We’d be happy to discuss how things might be adjusted to better meet your risk tolerance and investment objectives.

If you have any questions about this or any other financial matter, please do not hesitate to contact us. We’re here to support you and your family.

Click here to schedule an appointment

Michael Tannery CPA CDFA™ AIF® ● CEO
Registered Principal
Be A Financial Olympian

Similar Posts

Leave a Reply