6 Investing Tips for a Volatile 2024: Advisors' Advice

2. Monitor, diversify and tweak when needed.

My most significant portfolio concern is market volatility. In today's economic climate, financial markets can experience rapid fluctuations due to various factors, such as global events, economic indicators, and geopolitical tensions.

Now more than ever, it is imperative to closely monitor your portfolio's performance, diversify your investments to mitigate risk, and possibly consider adjustments or rebalancing if necessary to align with your long-term financial goals.

Individuals must assess their ability to weather volatility. Short-term cash needs should be allocated to Treasurys or CDs. Also, individuals' psychological resilience should be assessed, and, if lacking, further diversification into less correlated assets can reduce market volatility.

— Laura Mattia, CEO and founder, Atlas Fiduciary Financial

3. Gird for potential inflation resurgence.

Our biggest concern for 2024 is the disconnect between the market’s expectations on interest rates relative to the Fed’s guidance. We feel there are still enough inflationary forces in play that even the Fed’s guidance of three rate cuts in 2024 could be a stretch.

The market is projecting six to seven rate cuts by the end of the year. Absent a major slowdown in productivity, the data doesn’t support rate cuts of this magnitude.

The risk here is the market recalibration should we see a second wave of inflation rather than economic weakness. We are protecting portfolios by remaining relatively short in bond duration and making sure we are rebalancing our positions in technology stocks that saw large gains in 2023.

— Michael Becker, partner, Toberman Becker Wealth LLC

4. Control what's controllable.

My top concern is whether I have done enough education with my clients to help them control their emotions during periods of market volatility. 2023 has shown us, once again, that it is nearly impossible to predict what the market will do.

I educate my clients to focus on controlling the things they can: When they start investing and how much, their portfolio allocation, the type of accounts they invest in, fees paid, rebalancing accounts, and most importantly, not allowing emotions to control their investing decisions.

The thing we are not able to control is how the market is going to perform every year.

— Heath Biller, financial advisor, Financial Planning & Investment Management

5. Don’t get distracted.

What I’m worried about in 2024 are the inevitable temptations we will face in the media and markets that are sure to try to take good, well-meaning people off track from their plans and goals. In 2023, we had banks collapse, the Fed continued raising rates, and we had, and continue to have, multiple wars around the world.

Despite all this and more, stocks and bonds had a great year in the end. If 2023 taught us anything, it should be to focus even harder on long-term goals and even less on what the financial topic du jour is.

— David Mathias, financial advisor, Lifetime Financial Advisors Inc.

6. Focus on long-term goals.

2024 will begin like many past years, full of uncertainty. 2024 may be great for financial markets. It may be awful. No one truly knows. However, based on historical data we can get somewhat reliable market expectations for long-term market performance: 10, 20 or 30 years.

Even a retiree in their 50s may remain invested for 30-plus years. Most investors should remain focused on long-term investing goals where even in bad markets, small modifications can keep us on track.

— Ross Dugas, founder and financial advisor, Scientific Financial