What should investors do about all this market volatility?

If the market’s recent rollercoaster movements are making you feel a bit woozy, then perhaps it’s time to rethink your investing strategy.

Oct. 8, 2021

There’s no single story or market mover today that can provide a more important insight than the market itself.

In the midst of so much volatility, what can investors do?

Time to take a breath…

There’s no denying that the market has been all over the place in recent weeks. September was its worst performance since March 2020, Monday saw a complete collapse in tech stocks, and yesterday, we saw another rally. China, inflation, debt ceilings — these are some of the many terms taking investors on an absolute rollercoaster of late. 

But do they matter in the long-term? Not really.

The first thing that investors need to realize is that market volatility is inevitable. It’s gonna’ happen, stocks will see-saw, deal with it. What you need to figure out is if you want to just ride out the wave, or continue actively investing. 

One tried and proven strategy that allows your mind to forget about volatility altogether is ‘dollar-cost averaging.’ In simple terms, this means that you invest a fixed amount of money into the same fund or selection of stocks at regular intervals over a period of time.

In doing so, you remove any emotion from your investing strategy, and simply invest at fixed points, regardless of market position, and make the most of the average historical return of 10% that the market has experienced since its inception in 1928.
If you’re an investor, and you simply can’t handle the sheer amount of volatility in the market right now, then dollar-cost averaging may be the solution for you. If you want to get a more in-depth look at this strategy, take a look at our free blog post here. It might just be exactly what you need.

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