Market Volatility: Then & Now
Given the market volatility we’ve been experiencing this newsletter will focus on my work as an investment manager and financial planner. The first time I experienced a market dip and increased volatility as an “insider” was during the 2020 Covid stay at home orders. The market experienced big drops in March and April, yet less than six months later overall the market had recovered. This time the market has gyrated wildly in an even shorter timeframe as the fear of tariffs comes and goes with political whims. Unfortunately, I don’t see this volatility ending anytime soon.
Both back in 2020 and today I firmly stand behind my training as a CERTIFIED FINANCIAL PLANNER© and the strength of a diversified portfolio to withstand in the long run. For those who are currently withdrawing from their portfolio, it’s important to have at least six months of cash set aside, but it’s even better to lean towards two years and invest in short term CDs whatever you might need in the next three years. This is the defensive method my previous firm took in 2020 and it’s the one we’re taking now at Strategy Squad.
Everyone else who, like myself, is decades away from needing to draw from investments, I suggest you stick with your current strategy, whether it be investing with every paycheck, or focusing on paying down high interest debt, or whatever is right for you. I’m happy to meet with people for a free 30 minute conversation to share educational resources on investing.
Please note that the information provided in this newsletter is for educational purposes only and does not constitute personalized investment advice. Market conditions vary, and everyone’s financial situation is unique.
Before making any investment decisions, please discuss it with a qualified financial professional who can provide recommendations tailored to your specific circumstances, goals, and risk tolerance. As always, remember that past performance is not indicative of future results, and projections are not predictions.
Behind the Scenes: My Evolving Role
While much has stayed the same when it comes to market volatility, my experience this time is different because I am now actively strategizing and placing trades, whereas in 2020 the firm I worked for had an investment team that took care of those things. I feel like I went from meal planning and serving the meal to now meal planning, grocery shopping, cooking, AND serving the meal.
These extra steps give me more of a chance to focus on each client, to think of their priorities and goals. Navigating market volatility has been stressful in the way of a strenuous hike that’s at the edge of my abilities or nurturing a relationship through conflict.
This has been deeply rewarding and I’m enjoying the effect of it, especially because I get to share the responsibility with Nicole Middleton Holloway, the co-founder of Strategy Squad and a colleague I deeply respect for her investment expertise.
You can learn more about Nicole and her journey into investment management in our joint podcast episode Community Investing: Building a Just Economy with Nicole Middleton Holloway.
In my capacity as a financial planner and investment manager I spend more time behind the scenes creating strategies and working on client plans, than actually meeting with clients. This is the opposite of my work as a money coach, where I spend the bulk of my time with clients helping them create their own plan. Because I am deeply extroverted and relational, my favorite part is meeting with clients and having deep conversations.
In order to get myself in the right mindset for the less immediately rewarding behind the scenes work, I often picture in my mind’s eye the client who I’ll be serving and feel love for them. I know, I know, this sounds incredibly corny! Yet it’s the best way to describe my process. I think back through our conversations, I remember their questions, and I steep myself in the honor I feel to get to support them in such a key area of their life. After that “love immersion” I’m ready to dive into their financial plans and investment strategy with gusto.
Bring the Focus Back to What’s Within Your Control
While market volatility is stressful for both clients and investment managers, it is part of investing. The extra attention I’ve been giving clients is part of my fiduciary responsibility to always prioritize client’s best interest and I am honored by their trust in me and everyone I share the investment work with at Natural Investments and Strategy Squad.
Just like in July of 2020 when I wrote Meeting the Business Cycle as a Pre-Schooler I invite you to be selective in your news consumption and to focus on what you do have control over: your thoughts and the stories you tell yourself.
In solidarity,
Diana Gisel Yañez
Did you enjoy this newsletter? Subscribe to the All the Colors newsletter for monthly thoughts on money. This is also the main place where I announce upcoming online workshops and new offerings.