Steven Furtado, Portfolio Manager and Co-Founder of Savoir Wealth | Driving Financial Literacy and Tailored Solutions for Business Owners.
Market volatility has become an unavoidable part of investing today. If you’ve felt unsettled watching markets fluctuate, you’re not alone, and the good news is there are practical strategies to help you stay grounded and proactive during uncertain times.
As part of an advisory team with an integrated approach to wealth management, covering tax, estate, corporate planning and personal goals, I know that addressing volatility isn’t just about riding it out. It’s about being intentional with your strategy, staying aligned with your long-term plan and identifying opportunities amid the noise.
Here are six ideas to consider that can help manage market uncertainty and volatility.
1. Customized Exposure With Structured Notes
Structured notes are flexible investments that let you define how much risk and potential return you’re willing to take. Depending on how they’re built, they can offer income, full principal protection, downside protection or an enhanced upside, tailored to your specific goals and market outlook. At my firm we often use them to create a favorable risk-reward setup with clear expectations and even rules-based outcomes.
2. Diversifying With High-Quality Private Assets
Private investments, like real estate, royalties, infrastructure or private credit, to name a few, don’t necessarily move in lockstep with the public markets and typically avoid daily price swings. While they carry their own risks, their lower perceived short-term volatility can offer valuable balance within a broader portfolio, adopting more of a pension-style approach to portfolio composition.
3. Incorporating Precious Metals For Long-Term Stability
Gold and other precious metals have long been viewed as a hedge against inflation, currency fluctuations and geopolitical risk. They tend to perform differently from equities and bonds, making them a strong diversifier in times of market stress.
While they may not generate income, their role in preserving purchasing power and reducing overall portfolio correlation can be meaningful. Allocating a small portion of your portfolio to precious metals, either through physical holdings or professionally managed funds, could add resilience to your long-term strategy.
4. Hedging With Derivatives
Used wisely, derivatives such as put options can help cushion your portfolio during downturns. A put option allows you to sell a stock at a set price, gaining value if the market drops. This can offset potential losses in your holdings without having to sell them, essentially acting as portfolio insurance while keeping you invested for the future.
5. Being Tactical With Cash And Equivalents
Cash isn’t just a safety net; it’s a strategic asset. High-interest savings, cashable guaranteed investment certificates (GICs) or short-term bonds can earn solid returns while keeping you nimble. Having liquidity means you can move quickly when new opportunities arise, especially during market pullbacks.
6. Sticking To (And Refining) Your Dollar-Cost Averaging Approach
Regular investing over time, regardless of market highs and lows, remains one of the most reliable ways to manage volatility. If markets are especially choppy, increasing the frequency of your contributions (from monthly to weekly, for example) can help you better capture value during dips.
Of course, each of these strategies comes with trade-offs, and not all are right for every investor. The key is to align any decision with your personal risk tolerance and overall financial plan.
In volatile times, your greatest advantage is often a clear, well-integrated strategy, one that balances your short-term peace of mind with long-term financial success. That’s where a thoughtful, collaborative advisory team can make all the difference.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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