Given the past few days of volatility, it can feel concerning and scary. I can totally understand that because our human mind is wired to prevent us from making sound decisions when it comes to investing! The reason is our brain wants to protect us from danger, which is a reactive decision making process.

Whenever things are uncertain, that is where it comes the sweet spot between danger and opportunity as the Chinese proverbs say.

Well, if you plan to use the investment funds over the next few years, then maybe it might be better to shift money to cash because we can never know what will happen in the short term.

And if that was the original intention, you should have a lower allocation to equities to begin with.

But if your goals are further out, this can be an opportune time to buy on discounts. We may never be able to buy with the highest discounts but we know in 5-10yrs, on a broad diversification, you know that you would have made a great decision.

The right allocation mix would be the key to successful investing.

Clarity of your goal gives you better management of emotions.

Volatility is the “emotional price you pay” in order to get returns you want over time.

Having allocation to single stocks, single bonds and concentrated areas is generally bad assumption of risks.

If you had just bought into a low cost globally diversified portfolio risk adjusted based on your specific goals, this can be a great time to take advantage of the discounts.

Just like in the picture where you see art pieces, financial planning and investing is both an art and science. We use both abilities to our advantage.

If you are a doctor or wealthy individual who would like to find out how you can grow wealth with peace of mind and confidence, we can always give you a 2nd opinion to see your allocation, with regards to reduced risks, reduced costs, reduced volatility, enhanced diversification and enhanced returns together all at the same time.