You may recall our blog post from February titled, “Recent Volatility in the Financial Markets – Don’t Panic!”, which addressed the volatility in the stock market at the beginning of 2016. The rest of the first quarter was no different, as the markets rallied to new 2016 highs over the last few days of March.
The selloff at the beginning of the year, followed by several weeks of rising prices in the stock market, further illustrates the importance of maintaining a diversified portfolio tied to your risk tolerance and time horizon. It is important to remember that, in the short term, anything can happen in the stock market and to your investment portfolio. For those who “held on” and didn’t panic, you were most likely part of the 92% of investors who made money in the first quarter, according to this article from cnn.com.
If it has been a while since your last risk tolerance assessment, or if you are unsure if your current asset allocation is appropriate for you, don’t hesitate to call DirectAdvisors for a portfolio review today!