Don’t shy away from whipsawing markets

investmentnews.com:

Market volatility isn’t just a concern — it’s a constant threat, and Jeff Hausinger, president & CEO at All Seasons Wealth, faces it head-on.

“While it may seem like it ebbs and flows, it’s always there,” he says. “We try to focus our clients’ attention on the long-term approach. The key is to make sure your clients are in a position where they can weather it.”

Recent market upheavals underscore his point. On Monday, the Dow nosedived over 1,000 points, the broader market dropped three percent and the Nasdaq, laden with risky tech stocks, plunged 3.5%. This turmoil wasn’t confined to the US. Japan’s Nikkei 225 suffered its worst rout in history, plummeting 12%, while major Asian and European markets also took substantial hits. Hausinger’s approach ensures that clients aren’t forced to liquidate assets during these downturns.

“Make sure they’re not in a position where they need to take out when the market happens to be down,” he explains, stressing the importance of asset allocation and liquidity.

The current market tailspin stems from three interconnected fears: an impending recession, the Federal Reserve’s perceived inaction, and skepticism about AI investments. The US economy’s fragility was highlighted last Friday when the Bureau of Labor Statistics reported a meager addition of 114,000 jobs in July, with unemployment spiking to 4.3%. This sudden rise from last year’s historic low is alarming and feeds recession fears. Hausinger, however, is not surprised by the economic uncertainty.

“I try to remember that we always have economic uncertainty,” he notes.

Effective communication during these volatile times is crucial. Hausinger has witnessed a transformation in client communication over his 25-year career.

“It used to