Global markets have taken us for a wild ride thus far in 2022. Inflation is not yet under control, and the Fed is raising interest rates to combat it. Geopolitical tensions are leading to deglobalization, and investors are naturally worried about what this means for their portfolios. Whether we like it or not, most of us have acknowledged that these unresolved dynamics may keep markets volatile for the foreseeable future.
Volatility can be hard to stomach for many people, and investor sentiment is reflecting just that. According to AAII’s Investor Sentiment Survey, 20% of participants responded that they feel “bullish” about the markets right now. As such, it’s no surprise that we are fielding more frequent questions from clients and prospects about whether it’s time to “get out” or at least hold excess cash until the markets temper.