A slew of negative news has anxious clients calling their advisors. Here is how they are responding

ARTICLE SUMMARY

  • Market volatility has increased sharply due to falling stocks, rising oil prices (over $100 per barrel), and a weak jobs report, pushing the CBOE Volatility Index up more than 50% and the S&P 500 down over 2% in a week.

  • Clients are contacting financial advisors with concerns, largely because geopolitical tensions and energy price spikes could keep inflation elevated and delay central bank interest-rate cuts.

  • Advisors are encouraging long-term discipline, reminding investors that geopolitical shocks usually create short-term volatility but rarely change long-term market trends.

  • Portfolio adjustments are modest and strategic, such as slightly increasing exposure to sectors that benefit from inflation (e.g., energy, materials, commodities) while avoiding reactive changes based on headlines.

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