Riding the waves of market volatility

As sharemarket volatility looms, investors should remember you can’t control everything.

Most decades bring at least one major market correction, and unless you’re an experienced investor, panic can quickly set in. Let us soothe your nerves and remind you of some things that are just beyond the limits of your control. Think of the market like the tide, sometimes it rises, and sometimes it falls.

Today, most young investors have never experienced a down or “Bear” market (prolonged price decline). There is no better time than now to rely on experts, let us shoulder the stress and maintain your progression, keeping you on track to achieve your goals. Investing is for the long-term, and riding the waves of volatility with a plan will provide the best opportunity of attaining what you set out to achieve. 

Learning from the past

“The initial period when we see a change in market conditions is always an especially tricky time for investors. Today’s view of the future is murky as we see a number of factors, including inflationary, monetary policy, and seasonal factors being made worse by the ongoing impacts of the pandemic.'' says Tom Culver, Global Head of Wealth at Douugh

We are currently in an unusual and almost unprecedented market with record low interest rates combined with accelerating inflation, leading to uncertainty surrounding the near-term economic outlook. While market fluctuations are perfectly common, there is uncertainty towards resolving these issues promptly. Due to the low rates - a hangover from the last market correction brought on by the Global Financial Crisis in 2008 - the Federal Reserve now has limited options to combat these problems.

That being said, Douugh isn’t predicting a crash or even a major correction at this time and maintains confidence in our approach. As headwinds strengthen due to inflationary 

pressures and the prospect of several interest rate rises, taking a balanced approach to portfolio management is vital. A balanced approach is designed to help investors limit losses and preserve cash to maximize future opportunities. 

Looking forward to the future

During periods of market volatility, it’s important to remind yourself that investments can lose money. Having a plan implemented off the back of this notion can help maintain confidence in your long-term financial journey. The plan should not simply focus on market prices that are out of your control - but how you will react when faced with changes to them. 

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Investing involves risk. You aren't guaranteed to make money, and you might lose the money you start with. 

Douugh Australia Pty Ltd ABN 76 617 000 138 operates under Douugh Australia Pty Ltd AFS License No. 500063. Although we endeavour to ensure the accuracy of information we provide, we do not accept responsibility of liability for any errors or from any loss from its use. Any information provided is general advice only and has been prepared without considering your objectives, financial situation or needs. We don't provide personalised advice or recommendations. Before making any investment decision you should consider whether it is appropriate for your situation and seek appropriate taxation and legal advice. For more details, see our FSG, Terms of Service and other disclosures.