What should an investor do in light of the war in Ukraine, inflation, and recent market volatility?

Gennaro Marsico, JD, CFP^®, CIMA^®
Senior Vice President, Investments

Every investor has a unique risk tolerance and situation. It is important that they maintain a diversified portfolio that meets their specific needs. With that being said, 2022 has started out with a perfect storm of negative events that has blocked out much of the sunshine and optimism of the last three years in the market. Many concerned investors wonder whether they should sell to protect their nest eggs from possible further decline. 

While no one can time the market, over 200 years of history shows us that despite short-term drops, investors generally fair better when they stay invested and don’t try to jump in and out of the market based upon short-term volatility. Instead of “panic-selling”, investors should be seeking guidance to determine whether their current allocation matches their long-term goals and comfort level. Once they have an appropriately diversified portfolio, they should hold tight through good markets and not-so-good ones alike.