

What (not) to do when markets are volatile
11 snips Apr 16, 2025
Market volatility can stir up anxiety, but maintaining a long-term perspective is key. Historical context reveals that downturns are common, and patience pays off. The concentration of U.S. markets is scrutinized, particularly the influence of major tech companies. Interestingly, older investors highlight the importance of time in the market for financial recovery. Ultimately, avoiding impulsive decisions during turbulence is crucial, as sentiment often overshadows fundamental factors. Calm and measured strategies lead to better outcomes.
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Market Volatility Is Normal
- Market volatility feels scary but is normal and recurring.
- "This time it's different" is often said but the patterns remain the same.
US Market Concentration Normal
- US market concentration is not unusual historically.
- Big companies often earn half their revenue internationally, making them global.
Older Client Concern on Recovery
- A 74-year-old client worried about recouping losses.
- He likely has enough time given life expectancy and investment horizon with family.