Staying Focused When the News Feels Loud

By Net Worth Advisory Group

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If the headlines lately have felt unsettling, you’re not alone.

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Between ongoing tensions in the Middle East, economic uncertainty, and nonstop media coverage, it’s natural to wonder whether you should be doing something different with your investments. When uncertainty rises, anxiety often follows. But before reacting, let’s zoom out and consider the bigger picture.

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Historical Perspective: Weathering the Storm

Over the past few decades, investors have lived through major global conflicts, the Gulf Wars, 9/11, wars in Iraq and Afghanistan, government shutdowns, debt ceiling crises, pandemics, regional banking scares, and countless geopolitical flare-ups. Each time, the news cycle suggested that things might spiral. But over time, markets have worked through these periods and continued progressing despite the uncertainty.

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For example, after the Cuban Missile Crisis, the market rebounded with a 27.8% return within a year, and after the COVID-19 pandemic, the S&P 500 posted a 43.7% recovery. These historical recoveries illustrate that, despite short-term volatility, the long-term market trend tends to be positive.

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Markets don’t like uncertainty, but they’ve shown resilience through it. Historically, despite short-term volatility, long-term growth has prevailed.

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Volatility: A Normal Part of Investing

Volatility is not a flaw in the system; it’s a normal part of long-term investing. While markets react to uncertainty, it’s essential to understand that this volatility often leads to eventual growth. Making reactive moves during uncertain moments can feel productive, but history shows that emotionally driven decisions often do more harm than good. Missing even a handful of the market’s strongest recovery days can significantly impact long-term results.

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For example, missing just the 10 best market days between 2000 and 2019 would have reduced your returns by over 25%. This shows the importance of staying the course rather than trying to time the market based on short-term news.

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Stay the Course

Our message remains consistent: Stay the course.

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This doesn’t mean ignoring risk. Instead, it means preparing for it in advance. Diversification, thoughtful allocation, and planning that accounts for both good times and difficult ones are key to safeguarding your portfolio. Remember: your portfolio was not built for a single news event. It was designed to weather decades of economic cycles, global disruptions, political changes, and yes, periods of heightened geopolitical tension.

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The Power of Diversification

Diversification is one of the most powerful tools in managing risk. By spreading investments across various sectors, asset classes, and geographies, you reduce the impact of any single event or sector on your overall portfolio. For instance, during the Iraq Invasion, while energy stocks faced short-term declines, technology stocks remained stable. This kind of diversification can shield you from unpredictable market swings.

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What to Do in Times of Uncertainty

When recent events have you feeling uneasy, the wise move may not be to change your portfolio, but to revisit your financial plan. Sometimes reminding yourself of the reasoning behind your investment strategy can provide the clarity and confidence needed to stay on track.

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Your portfolio is designed to handle uncertainty, so reacting to every headline is a mistake. By maintaining your long-term strategy, you position yourself to benefit from the eventual market rebound.

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Focus on Long-Term Goals During Marketing Volatility

Investing is a marathon, not a sprint. The key is staying focused on your long-term goals, even when short-term events create noise. Reassessing your goals, risk tolerance, and portfolio allocation during moments of uncertainty is vital for reinforcing your commitment to your financial future.

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At Net Worth Advisory Group, we’re here to help you stay focused on what matters most: your long-term goals. If you’re feeling uncertain, don’t hesitate to reach out. Sometimes the most valuable move isn’t changing your portfolio but revisiting your plan and reminding yourself of why it was built the way it was.

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We’re committed to helping you stay the course and make confident, informed decisions that align with your future.

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Call us at 801-566-6639 or schedule a complimentary, no-obligation consultation to see if we are a good fit to help you stay calm and stay the course.

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About Net Worth Advisory Group

Founded in 2003, Net Worth Advisory Group is an independent, fee-only, CERTIFIED FINANCIAL PLANNER® and investment advisory firm located in Salt Lake City, Utah. We specialize in helping people transition from the workplace into retirement and ensuring that those who are already retired will not outlive their nest egg. Our top priority is to have clients experience a greater sense of ease with diligent, personalized wealth care and the implementation of customized financial plans and ongoing personalized asset management. We equip all clients with a comprehensive financial plan, meeting every six months to update as needed and review investment performance. Our team is passionate about providing comprehensive financial planning with the fee-only model, and we love feeling like we’re making a difference in our clients’ financial lives.

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As a NAPFA-registered fee-only advisory firm, our recommendations are untainted by a hidden agenda to sell financial products paying large commissions. Unlike our competitors at brokerage firms, insurance companies, and banks, we are compensated solely by our clients, so we are financially motivated to provide objective advice that is always in our clients’ best interests. Anyone can call himself or herself a financial planner, but only an advisor with the CERTIFIED FINANCIAL PLANNER®, CFP® designation has met the education, examination, experience, and ethical requirements mandated by the CFP® board. According to the CFP Board, there are 97,000+ CFP® professionals in 2023, representing about 1 in 3 financial advisors in the U.S. Net Worth advisors are also members of NAPFA, which only has about 4,600 advisors, and are either CFP® professionals or CFP® professionals in training.

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Net Worth Advisory Group’s mission is to significantly improve the lives of our clients by delivering exemplary financial planning and wealth management advice that enables them to live the lives they have imagined.

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