How 10 Advisors Are Handling Market Volatility in 2022: Advisors' Advice

When financial markets are as volatile as they are now, advisors can help calm investors’ fears triggered by the steep declines in stock prices, rising yields in the bond market and surging inflation.

Despite Thursday’s intraday rebound in stock prices, the Nasdaq is still trading in correction territory, the S&P 500 is down about 8% below its Jan. 4 peak and the 10-year Treasury yield is at or near 1.8%, about 30 basis points higher than a month ago though below its latest peak.

Given this backdrop, ThinkAdvisor thought it would be a good idea to ask advisors about how worried their clients are about the market’s descent and whether they are adjusting client allocations.

At least one, expecting rising rates and increased volatility, had already tweaked portfolios, but all were confident that the long-term, diversified all-weather portfolios they developed for clients would serve them well over their long-term investing horizon, including retirement.

Many said they repeatedly warn clients to expect 10% corrections every year or so knowing that the S&P 500 hasn’t experienced one lasting more than a few hours or a day since early 2020, at the beginning of the coronavirus pandemic.

Check out the slideshow above to see how 10 financial advisors, most of them certified financial planners, responded to our query.