Can All This Volatility Actually Help Your Portfolio?

Last year was near perfect for the markets — the S&P 500 not only gained over 21%, it also was the first year in history that the index didn’t experience a single down month. This year, however, is noticeably different. A rocky beginning may have you wondering if the long-running stock rally is over, though that’s not necessarily the case. In fact, the volatility may actually be a blessing in disguise.

Are You Ready to Bear the Full Brunt of Volatility from Equity Markets? Consider Fixed Income Ahead of the Market’s Next Downturn

What is the role of fixed income in your portfolio? There are two key considerations for fixed income that all investors should understand.

First, fixed income’s role is not diminished by what may be greater hurdles in the future (ie. rising interest rates). When the next downturn comes, we fully expect fixed income to outperform equity assets.

Second, price returns of bonds are not the whole story. Remember, what you glean from a month-end investment statement is only part of the narrative.

How did we arrive at these findings? Let’s take a look at what brought us here.

What Do Tariffs and Trade Wars Mean for Investors?

What You Can Expect and Resources from Fi3

Talks of tariffs and trade wars dominate the news. But what does this mean for investors? Market returns have been far more mixed and volatile in 2018. There are several factors involved, the most recent being rising tensions over trade between the U.S. and China. A series of recently announced tariffs has increased concerns for a broader trade war, which has impacted the markets.