Key Takeaways:

Market volatility is normal, and recent downturns follow years of unusually high returns.
Long-term success depends on sticking to your asset allocation based on risk tolerance and time horizon.
Patience and discipline are key—time is an investor’s ally.

Recent financial market volatility has been very unnerving. Inflation, Federal Reserve actions, and political instability have all been in the headlines and have factored into the recent downturn in the markets.

We do not think our economy and financial markets are headed in a cataclysmic direction. Like all things, the financial markets are very cyclical. Over the last three years, many market indices have more than doubled their historic market returns. Everything finds its level – including the financial markets. If it is too good to be true, it usually is. One growth ETF returned 35%, 37%, and 27% over the years, 2019, 2020, and 2021 respectively. That could not continue.

Our core philosophy is Asset Allocation is the primary determining factor driving performance over the long term. If your Asset Allocation was correct entering this downturn, you will be ok in the long run. Now is not the time to panic, it is the time to stay disciplined to your Asset Allocation which is determined by your Risk Tolerance and Time Horizon.

We at AP Wealth Management appreciate the confidence you have placed in us and are working hard to continue to keep that confidence over the long term. Please feel free to contact us with any questions or concerns you may have. We are here for you. Also, if someone you know needs support or a second opinion during these challenging times, we are happy to chat with them as well.