ADVISORNEWS
Position A Portfolio: Finding Certainty In The Midst Of Uncertainty Just because the market is unsure does not mean that an investor needs to be unsure. • Bryan Cannon
U
ncertainty is an inescapable part of life. Google the word “uncertainty” and you will not discover ways to do away with it, you will only find ways to deal with it. The changes brought to our world by the COVID-19 pandemic revealed just how all-encompassing uncertainty can be. From infection rates to interest rates, many experts had to admit that the “new normal” makes it difficult to be certain about anything. Nowhere is this more obvious, or more unsettling, than in the area of financial investing.
Addressing The Certainty Of Uncertainty
The certainty of uncertainty always has and always will be a component of investing. Investing well does not mean you have done away with uncertainty; it simply
38
InsuranceNewsNet Magazine » May 2022
means you have found a way to manage it. Financial advisors will never be able to offer their clients guarantees. However, by understanding the various market factors that are at work, we can provide our clients with investment strategies that acknowledge unavoidable uncertainties and incorporate the necessary flexibility, diversity and responsiveness into those strategies. Just because the market is unsure does not mean that an investor needs to be unsure.
Considering Inflation Concerns
Inflation is one of the key factors to consider when positioning investment
portfolios for success in 2022. Although the current rise in inflation was initially deemed “transitory,” a recent article in Forbes reported some experts predicting inflation will last well into 2022 and possibly beyond. While history provides lessons on the impact inflation can have on investing, the uncertainty associated with inflation makes predicting fluctuations impossible even with years of history from which to glean. Not only is the course of inflation uncertain, with many variables affecting it, but the way in which investors react to inflation and their impact on the market
While history provides lessons on the impact inflation can have on investing, the uncertainty associated with inflation makes predicting fluctuations impossible even with years of history from which to glean.
