The S&P 500 is up a skimpy 2.5% year-to-date despite surges in volatility before and after the Brexit. Yvette Butler, president of Capital One Investing , said investors won’t profit from complaining about their market mistreatment and should ‘control what they can control’ instead. ‘Always check your asset allocation, make sure you have a low cost strategic asset allocation and make sure you have a financial plan,’ said Butler. ‘And the most importantly, stick to it.’ Butler said the first move for nervous investors is to talk to their advisor in order to understand market dynamics in the aftermath of events like Brexit. ‘Remember, if you opt to work with an advisor, you can still have a hand in managing your portfolio,’ said Butler. ‘Often a combination of self-directed digital engagement and monthly or quarterly advisor check-ins help investors feel secure about their plan, but not overwhelmed by decision-making.’ She also advised investors to stay focused on their long term strategies. ‘Don’t let market volatility distract you from your savings goals or intimidate you out of the market,’ said Butler. ‘Keep a clear head while making decisions based on your long-term strategy rather than fear.’ And when stocks selloff in a big way, like the 10% drop in January, Butler recommended investors take advantage of the situation. She said selloffs of that magnitude offer investors the opportunity to capitalize by increasing allocations to their investment accounts. Or in other words, ‘the lower the price, the greater the discount for long-term investors.’ Finally, when it comes to the Presidential campaign, Butler said investors are definitely feeling uncertain and it feeds back into the market. Once again, she advised investors to maintain cool heads and they will win in the long run. ‘We do expect that volatility to continue through the rest of the year, but see it as an opportunity,’ said Butler. ‘Use your access to your advisor to avoid the most frequent mistake that investors make and that is overreacting to the volatility and selling when the market is low.’
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