Page 23 - LIN_April_2024_web_file

Insights from Tom Moran AIF ®

Chairman | CEO | CIO Moran Wealth Management®

he stock market operates in a state of perpetual motion, A few tried and tested strategies to navigate through market
with its values rising and falling each trading day. This volatility include:
Tpattern of daily fluctuations, aptly known as "market Staying the Course: Remember, investing is a marathon, not
volatility," is not only the lifeblood of investing, but also a key a sprint. A diversified portfolio is designed to withstand market
factor that shapes the dynamics of individual stocks or the market fluctuations.
as a whole. Although it may unnerve investors, volatility is an View Volatility as an Opportunity: Bear markets could
integral facet of investing that, if managed well, can present offer chances to buy stocks at discounted prices, particularly for
investors with golden "buy low and sell high" opportunities. consistently strong companies.
Demystifying Volatility Maintain a Healthy Emergency Fund: This ensures you won't
Despite its daunting reputation, volatility is not something need to liquidate investments during volatile periods.
to be feared. Quite the opposite, it is a catalyst for change in the Rebalance Your Portfolio: Adjust your portfolio as needed when
market, a driving force that can precipitate beneficial increases in volatility causes significant shifts in investment values.
stock prices or uncover attractive buying opportunities in the wake
In conclusion, market volatility, although initially intimidating,
of a bear market, for those who anticipate a market recovery.
can be a manageable aspect of investing. Research suggests that
Assessing Market Volatility
over a seven-to ten-year period, stock performance can be more
Market volatility can be measured retrospectively or projected
predictable, with stocks likely to outperform bonds and cash.
into the future. Retrospective measurement involves examining
This knowledge underscores the significance of enduring market
price fluctuations over time, while future projections rely on
volatility as a steadfast investor, especially for those striving to
implied volatility. Tools such as the standard deviation of the
achieve their financial objectives.
S&P 500 index's monthly returns and the Volatility Index (VIX),
often labeled the 'fear gauge', are used to quantify these metrics. Navigating market volatility can be challenging, but working
The long-term standard deviation of the S&P 500, for instance, with a knowledgeable financial advisor can be invaluable. At
typically hovers around 15.6%. Moran Wealth Management®, our dedicated team is committed
Factors such as global pandemics, decisions on interest rates, to upholding your best interests and providing the clarity and
and electoral outcomes can instigate significant market uncertainty, knowledge you need to confidently navigate through market
often contributing to increased volatility. volatility. Reach out to us at 239-920-4440 to set up an
Steering through the Swells of Volatility appointment with one of our financial advisors. Let us help you
Contrary to popular perception, heightened volatility does remain on track towards your financial goals.
not always indicate a forthcoming bear market. In fact, history is
This presentation contains general information that is not suitable for everyone and was prepared
replete with instances where the market has bounced back to new for informational purposes only. Nothing contained herein should be construed as a solicitation to
heights following periods of intense volatility. The art of mastering buy or sell any security or as an offer to provide investment advice. Moran Wealth Management,
market volatility then lies in having a robust long-term investment LLC is a registered investment adviser. Registration does not imply a certain level of skill or
plan, which is equipped to weather these market upheavals. training. For additional information about Moran Wealth Management, LLC, including its
services and fees, send for the firm’s disclosure brochure using the contact information contained
herein or visit advisorinfo.sec.gov.
www.Thomas.Moran@MoranWM.com
Tom Moran Phone: 239.920.4440 www.MoranWM.com
AIF® Chairman, CEO, CIO Moran Wealth Management® Fax: 239.431.5239 5801 Pelican Bay Blvd, Suite 110,
Naples, FL 34108

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Moran Wealth Management is a separate entity from WFAFN. 1221-04126
Life in Naples | April 2024 23