Market Volatility Guide

Market Volatility Overview

Market volatility is the fluctuation in the price per share of investments.  Investment prices can change more dramatically during times of economic uncertainty or stress. There’s usually no single cause of market volatility, and it’s typically the result of many complex economic factors that are beyond the control of any single person, company, or government.

Investors should be cautious when trading during times of increased market volatility because it’s easy to do harm to your account that is tough to overcome. While it may be alarming to see the value of your retirement plan account change drastically from one day to the next, it’s important to exercise disciplined investing principles during times of economic stress so you don’t potentially lock in major losses.

Developing your investment strategy before an economic crisis is the best way to prepare and avoid emotional investment decisions.

What you can do.

1. Do nothing – which is often the best course of action if you’re not an experienced investment professional.

2. Change your portfolio’s risk level, but beware of locking in losses.

3. Temporarily deposit your contributions into a FDIC-insured cash account, Schwab Bank Savings Money Market Deposit Account.

How we have your back.

Personal Advice

When your plan’s investment adviser is ERISA Advisers, you have access to a team licensed investment advisors that are ready to work with you in a one-on-one setting for personal advice that’s tailored to your needs.

Schedule a Meeting Now

Performance Monitoring

We constantly monitor the market and provide your plan’s investment committee the insights necessary to adjust your plan’s investment menu over time.

Model Investment Portfolios

By investing in our model portfolios, we’ve made it easy to access professionally-managed portfolios at no additional cost. So you can spend less time worrying about your portfolio and more time planning your retirement.

Strategic Rebalancing

As markets become volatile, they often present good opportunities for us to rebalance the model investment portfolios in your plan so that we can help you take advantage of market fluctuations.

Looking for more information about our investment portfolios?

Helpful Resources

Nobel Prize Laureate Eugene Fama on Volatile Markets

7 Ways to Adapt for Volatile Markets - Charles Schwab

Market Volatility: Check Your Emotions at the Door - FINRA