graph showing the range of investor emotions as they see market indexes fluctuate with volatility

Market volatility anxiety persists especially during times of extreme volatility…but we’re looking out for you! in fair times, or foul. Market volatility anxiety is an issue for many investors, especially following extreme events of either significant falls in value in a short period, or in periods of persistent ‘abnormal’ levels of volatility. It happened after ‘the crash’ of October 1987; again following the ‘tech bust’ in the years following 2000; during the decade after the events of the GFC unfolded with devastating effect; and to a lesser extent in the aftermath of the COVID-19 pandemic.

ContinuumFP sought to settle the anxiety

Following one of the series of ‘aftershocks’ of the GFC that struck in mid-2011, we wrote:

During the extreme volatility of the past couple of weeks we were on the job and mindful of the concerns that would be troubling our clients. We didn’t sit back and hope that you would be OK – we contacted you promptly, early in the days of extreme market movements, up and down!

Clients with particular strategies that would be more highly exposed received a special communication alerting them to our process of daily monitoring – with advice as to what action would be required if the fall escalated; and clients who we knew had expressed heightened anxiety during volatile periods a couple of years earlier were contacted as well.

A number of you have expressed your appreciation for our process telling us that, knowing we were watching the market developments whilst mindful of your personal situation, was comforting.

Unfortunately we expect that there could be some more market volatility over the next several weeks and whilst we are not concerned that there will be another major downturn, we will be maintaining our watch and be in contact appropriately.

Market volatility anxiety lives on (as market volatility persists)

Following the GFC of 2008/2009,there were occasions when volatility raised the anxiety levels of investors: they included August 2015, January 2016; and again in February 2018 to name a few – and on each of such occasion we make prompt contact with clients to explain our understanding of the underlying issues of the respective events and offering to meet to discuss their concerns.

Your market anxiety antidote

If you, or family or friends experience market volatility anxiety, we are available to help work through that situation: whether it is to just confirm that your financial position is secure, your goals attainable – or to review your financial strategy – meet with one of our advisers. To arrange the meeting, phone our office (07-3421 3456) or complete our Contact Us form: we will get back to you promptly.

(This post was first published in August 2011: it has been occasionally refreshed and updated, most recently in April 2021.)