AUGUST 12, 2022

MARKET VOLATILITY: Seven tips to help you navigate volatile markets

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PERSONAL FINANCE

Feeling uneasy about the markets recently? You’re not alone. So far in 2022 the markets have seen a lot of ups and downs. The war in Ukraine, COVID-19 lock-downs, and supply disruptions have created volatility in markets around the world. This has led to a rise in inflation and cost of living, which impacts retirement savings. While most investment experts tell us to stay the course, it’s easier said than done.

History tells us that investors often make emotional decisions, rather than rational ones, during times of stress. This is dangerous because our attitude toward risk often depends on our emotional state. Making dramatic changes to your portfolio during a market downturn can leave you vulnerable. However, you can rely on the professionals at PEPP to help you with these tough decisions.

PEPP has been successfully fostering financial wellness with public sector employees since 1977. We have over 45 years’ experience and about 150 staff who are committed to helping you be successful in your retirement goals. Like you – we are members too!

Here are a few tips that may help you during this period of market volatility:

1) Look at the big picture

Instead of reacting to what has already happened, try to focus on the future. Keep the market condition in perspective and remember saving for retirement is a long-term goal. Decisions shouldn’t be made based on what’s happening in the market in the short-term.

2) Focus on the long term

While it’s hard to focus on the long term when markets are down, recall why you originally selected your investment option. Investments fluctuate on a day-to-day basis. But, the longer you stay in the market, the less the fluctuation affects the overall performance of your fund.

3) Diversify

PEPP looks after this for you. All of PEPP’s asset allocation funds are invested in a well-diversified portfolio of asset classes and investment managers. Diversification reduces your overall risk because the positive performance of some investments off-sets the negative performance of others.

4) Understand your investor profile

We all have different retirement goals and different time frames for achieving them. Complete the My PEPP Investor Profile – it measures your tolerance for risk and analyzes your investment style to see what type of investor you are.

5) Look at the historical data

How has your account performed in the past? If you’ve been a PEPP member during past economic events, it’s easy to see how your PEPP account has performed and recovered through previous uncertain times. Sign up and log in to our online member portal called PLANet, to view your individual portfolio anytime - 24 hours a day/ seven days a week, and get a better understanding of your personal account. Click here for the link.

6) Look before you leap

Making hasty changes to your investments based on short-term market fluctuations can have long-term consequences. If you are considering changing your PEPP investment option, review your investment strategy and Investor Profile, and call PEPP.

7) Talk to one of our professional consultants

Always feel free to call PEPP at 1-877-275-7377 with any questions, or to make an appointment with one of our Retirement Information Consultants who are CERTIFIED FINANCIAL PLANNER® or QUALIFIED ASSOCIATE FINANCIAL PLANNER™ professionals. Our consultants receive no commission, and are dedicated to providing you with transparent information to help you make decisions about your PEPP account depending on your individual needs and goals.