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How Organizations Can Weather Market Volatility

The market’s ups and downs have left many organizations uneasy

The market’s ups and downs in the last year or so have left many investors anxious. But it’s important for associations that might be getting uneasy about their investments to understand that this is common in the bigger picture. “Volatility—even the kind of volatility that we’ve seen here over the past three months—is pretty normal,” said Ahmed Farruk, senior consultant with DiMeo Schneider & Associates.

In 2017, “there was basically no volatility at all,” Farruk said, and every month was a positive one for stocks. ”So, some investors may have gotten conditioned to the idea that markets kind of always go up—which is certainly not the case.”

But, to make sure they can weather changes in the market, associations should be looking at how their assets are invested “and making sure that those tie to their longer-term objectives and to the time horizon of the funds,” Farruk said. For example, if you have a long-term portfolio and have set it aside for long-term growth, but you’re fretting about the value going up or down from day to day, maybe it’s time to question whether it’s really long term.

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