Managing assets during volatile periods requires patience. Volatility causes anxiety in investors as they see unrealized losses mount in their portfolios. Yet, by its very nature, volatility is temporary and is a normal occurrence in the financial markets. Historically, these periods have worked out for investors who show patience and don’t panic
In recent months, prospective tariffs related to U.S. trade have caused volatility in the market as investors have tried to decipher what new tariffs mean for the economy and the capital markets. However, it is important to remember that as quickly as tariffs are enacted, they can be relaxed.
In addition to being patient, another way to mitigate volatility is to have portfolios diversified across stocks, bonds and cash, as well as introducing differing equity styles such as growth and value or adding international equity.
Permanent loss can happen in two ways. It can result from an investment going bankrupt and causing investment capital to be lost, or it can occur when an investor sells an underperforming asset, in which case the unrealized loss becomes realized.
This is why we recommend that clients maintain a certain amount of liquidity in order to ride out periods of volatility. Permanent loss can largely be mitigated through prudent diversification and patient investing, both of which have served investors well over time.
To find a financial professional who can help you make informed financial decisions, visit kofc.org/familyfinance.
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ANTHONY MINOPOLI is president and chief investment officer of Knights of Columbus Asset Advisors and a member of the Knights of Columbus Board of Directors.








