World events always have had the possibility to impact stocks and investments, but that has been magnified given the incredibly tumultuous last two years. From the pandemic, to a heated presidential election, and now the attacks on Ukraine, it all has had severe ramifications for businesses, industries, and investments. It has left people wondering, how do you invest when such world events are causing such wild financial swings.

Jason Zweig discusses this in the Wall Street Journal, and how the conflict caused by Russia has had ramifications such as driving the price of oil to nearly $100 per barrel. However, Zweig actually warns against trying to plan your investments around predicting reactions to global events. He says, “Investors who overhaul their portfolios based on what the Fed seems likely to do could get stranded if it does something else entirely.”

Zweig explains how in finance, as with most things in life, it is a bad idea to make decisions when you are scared. And seeing wild fluctuations in your assets is scary to a lot of investors. It makes them panic and feel like they need to pull all their funds before they lose them due to whatever wild event is shaking things up. But reacting in such a way can often hurt you even more.

Another point stressed is that while investment options will look perilous in times of world upheaval, that quickly changes in the months that follow. It is only after giving it time that you see which markets are trending higher and which are struggling. So whether you are selling or buying, it makes more sense to wait until you can see what patterns are developing.

Fred Hubler, Chief Wealth Strategist for Phoenixville-based Creative Capital Wealth Management Group, a wealth management practice that services families in 28 states and specializes in retainer-based planning and alternative investment strategies, advises his clients to take a long view.

“History doesn’t repeat itself, but it does rhyme an awful lot,” Hubler jokes. “Looking at things the way they are versus what you think they should be also helps. We also use third-party research that doesn’t have a strong bias. If you ask an investment firm that does stocks and bonds, their answers will always be stocks and bonds. In our 18 years doing alternatives, we know stocks and bonds are not always the best place to put money” 

Lastly, as most investors should know, diversification of your assets is another safeguard. If financial changes in your own country’s market are making you see a loss, having investments in other countries heightens your chances of hearing good news from another market. Put simply, don’t put all your eggs in one basket.

For further insight on how to manage your investments during times of turmoil, read the Wall Street Journal article here.

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Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist.

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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