Market volatility refers to the movement of the value of investments in the market. Sometimes the values can move rapidly and unpredictably and this movement can be stressful for investors when they see these values rise and fall quickly.
In thinking about market volatility, it's useful to think about investment risk and return. Quite simply, risk relates to the variability of your investment returns in relation to your goals and timeframe.
Risk can come from a number of areas:
- Operations risk - the way in which a company is operated.
- Exposure risk - the risk of investments within a specific industry or country.
- Market risk - the extent to which prices move across the whole market.
- Currency risk - the way in which moving international exchange rates affect the price of overseas investments.
- Inflation risk - the risk associated with the increasing price of goods and services and it's impact upon your returns.
Although market volatility is out of your hands, it can impact on your personal financial situation.
Determining how to turn market volatility to your advantage can be complex. You might not even realise that changes or opportunities exist.
A Financial Services Partners Adviser can help you. You don't have to make financial decisions by yourself.
They will assist you with financial advice on:
- understanding your current situation
- identifying your financial and savings goals
- identifying your risk and return profile - your tolerance to market volatility
- growing your superannuation and investments, and
- protecting your income and assets through personal insurance.
Your Financial Services Partners Adviser will work with you to develop a financial plan that's specifically tailored to your needs. They will review your current situation and consider how to best put legislative change to good use for your needs.
If you're ready to start managing market volatility, we can match you with a suitable Financial Services
Partners Adviser who will be happy to begin working with you to create a financial plan that's right for you.
To get started, please use our adviser matching service.