In the previous years, many investors have been aware of the pullbacks that have been facing stock markets. In 2017, single digit pullbacks seemed to bring a kind of a relief to many portfolio managers and provoked a common concern whether 2018 market volatility would be much higher.
According to HCR Wealth Advisors, which develop strategies to help clients achieve their financial goals, although 2018 has already seen increased market volatility, it still remains difficult to tell whether that will continue for the remainder of 2018. However, indications are that this market volatility is not likely to revert to 2017 levels considering some factors like strengthening of the United States and the entire global economy considering the consumer, manufacturing, services and even new home sales indexes, combined with uncertainty in the global political and economic arenas.
In 2017, stock markets demonstrated a higher gain, associated with the solid earnings growth. In 2018, HCR Wealth Advisors, who seeks to help its client insulate themselves from significant financial risks, believes that the gains are likely to increase.
Another factor that HCR Wealth Advisors put into consideration as far as market volatility is concerned is the fund flows where they specifically focus on the new money being injected by investors. Equity funds have over the last years been having outflows which are expected to stop because many investors have observed a likely rise in market volatility in 2018. Nevertheless, investors should have in mind that no market rises in a straight line hence they should expect market correlation and correction, which is healthy.
HCR Wealth Advisors aims at establishing lasting relationships with their clients especially through their services, education, advises, communication and trust. They help clients prepare for the unexpected in the future. Every professional at HCR Wealth is tasked with a duty of empowering clients, starting with the CEO and founder Greg Heller.
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