Market Volatility Is Here To Stay. How Are Some Investors Dealing With It?

The first half of the year saw the market heading toward stability and growth for the first time in years. 

The Fed was considering a rate hike, wages were going up, unemployment was going down and investors were finally beginning to trust the market. And then came June 24th, the Brexit vote that crushed the stability that the markets had been slowly creeping toward and sent them careening back into uncertainty. Volatility plummeted in August and will possibly stay that way until Labor Day.  However, turbulence could possibly return after the summer. 

Fund managers are preparing for volatility in the market and a slowdown in corporate earnings that they see coming over the coming months and maybe even years. Their solution? Durable growth stocks.

What are investors doing to solve this?

Many investors are increasingly relying on stocks that can grow no matter what storms batter the broad market and overall economy. Investors are focusing on the small portion of stocks that have shown they can perform regardless of the current macro environment. They’re focusing on stocks that can consistently buck trends and continue to do well in a shaky market environment. Investors are looking for stocks that can show stability and the ability to continue to grow and create revenue regardless of the current market status.

What’s doing ok right now?

Times like these are hard for investors. Volatile markets can be dangerous. Stock fund managers are looking to durable growth stocks to help them through this period of market volatility. Currently fund managers like the technology sector, the health care sector, and the consumer discretionary sector.

Looking Forward:

Wall Street got a boost on August 26th, as Janet Yellen strengthened the case for an increase in the federal funds rate.  There is an increased possibility of a December rate hike.  However, there still continues to be doubt of anything happening in September. 

What can you do?
During times like this, it’s crucial not to get hung up in the volatility and stick to your story. SunStar Strategic helps you navigate the chaos by telling this story to the media, your investors and other stakeholders. Through a comprehensive messaging and communications plan, we can help you stay above the turmoil.

Read more about the current market conditions here.