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SL_MoneyFeature_0119FINAL_Layout 1 1 / 15 / 19 12 : 48 PM Page 1 RISK AND REWARD B y B I L L D O N A H U E A BOOMING U.S . ECONOMY . ASED ON THE HEADLINES , 2018 was a roller coaster of euphoric highs and crushing lows . For proof , look no further than the performance of the U.S . stock market . After soaring to his - Global instability . toric heights in September and October , the market experienced something of a crash in ANXIETY - STOKING VOLATILITY . late December , only to recover days later . B Because of such volatility , some market watchers have characterized 2018 as a year to forget . That having been said , many of the same factors that caused such uncertainty last year remain firmly in place . INVESTORS In the words of Timothy Chubb , chief investment officer for Girard , a wealth management division of Souderton - based Univest : “ The market doesn’t like volatility , and right now we’ve SEEK A PATH got a ton of it . ” While the U.S . economy has shown remarkable strength and the potential for continued growth , other developments through the uncertainty . have been far less encouraging . From the chaotic government shutdown to the ongoing trade war with China , recent headlines have jangled many a nerve for edgy investors . SUBURBANLIFEMAGAZINE.COM JANUARY 2019 42 |
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SL_MoneyFeature_0119FINAL_Layout 1 1 / 15 / 19 12 : 48 PM Page 2 “ So much hinges on the outcome of the U.S . - China trade negotiations , ” says Chubb . “ That’s important for a couple of reasons , and it will set the tone for the rest of the year . If we see a longer - term deal , it’s likely to lengthen the current economic cycle . If we don’t , a lot of companies will have to make some tough decisions , and it may lead to some weaker economic growth . ” Such “ growth scares ” aside , Chubb believes that , fundamentally , “ things are still moving in the right direction . ” IT’S ABOUT TIME The schizophrenic nature of the past year raises an important question in regard to the average American’s financial future : Does any of it matter ? While investors should stay informed and pay attention to what’s hap - pening in the world , Erik Strid believes making decisions for the short term has the potential to chill one’s long - term goals . “ All investment planning is about getting your time horizons right , and putting in money only when you can afford it , ” says Strid , CEO of Concentus Wealth Advisors , based in King of Prussia . “ If you calibrate your timeline correctly , you’re virtually bound to capture the rewards . Volatility has everything to do with your time horizon . There will be up - and - down changes over the life of an invest - ment , but risk comes into play when you bought something and decided to sell it for lower than what you bought it for . For someone with an appropriate time line , risk doesn’t exist . ” Strid poses a what - if in regard to kneejerk reactions to news of the day : Say , on Christmas Eve , when the markets plunged — the Dow Jones Industrial Averaged fell a jaw - dropping 650 points — and pundits raised fears of an economic slowdown , an investor reacted by liquidating his or her assets . The SUBURBANLIFEMAGAZINE.COM | 43 JANUARY 2019