F&M Trust talks strategy when it comes to volatile markets

Bruce Smith, investment and Trust Services Manager at F&M gave us some advice on how to manage an investment profile under rough conditions in the stock market.

Some of the main causes of volatility in the markets:

  • Fears of global growth slowing.
  • Decline in Chinese stocks after China’s devaluation of its currency.
  • Decline in oil prices
  • Signs of strength in the U.S. economy
  • Expectations that the Federal Reserve will gradually raise interest rates.

What investors can do to prepare:

  1. Have a strategy – Time Horizon, Goals, Risk Tolerance.
  2. Diversify – Asset Allocation of Stocks, Bonds, and Cash. What’s Comfortable and Let’s you sleep at night.
  3. Don’t try to time the market – Buy High/Sell Low vs. Buy Low/Sell High; “PowerBall Ticket Mentality”
  4. Invest regularly despite volatility – Dollar Cost Average
  5. Consider a hands-off approach. – Professional Investment Management

For more information or to speak to an F&M advisor, visit their website or call (717) 441-0223

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