Tips for investing in a volatile market

Mona Mahajan, Head of Investment Strategy at Edward Jones, explains how you can still invest during a volatile market.

Transcript

00:00So what is the best investment strategy then as you think about these periods of volatility that

00:04we could see, but ultimately what sounds like a pretty good fundamental picture still?

00:09Yeah. Yeah. It's a great call out. And look, I think what's worked this year has been that

00:13diversification story, that diversified portfolio across equities and bonds, across U.S. and

00:20international and across large cap and we'd say mid cap. So we still favor large cap, mid cap

00:27U.S. equities. From a sector perspective, while we continue to like tech and growth sectors,

00:34we like areas like financials and health care as well. So a little bit of cyclical exposure,

00:39a little bit of defensive exposure in that portfolio as well. And within the investment

00:43grade bond space, we still see value in that seven to 10 year type of maturity. We think,

00:48you know, even at four or four and a half percent, a U.S. Treasury 10 year bill or 10 year note is

00:55still pretty attractive for most investors. So with volatility expected to be ahead,

00:59at least in your view, and it seems like if history is any guide, we probably will see more

01:04volatility. What's your advice to investors to stay grounded as so many changes and so much

01:11shakiness could be underway? Yeah. You know, I'd say broadly, think about the long term investment

01:17profile. On average, the S&P returns seven percent annually higher than almost any other asset class

01:23out there. But we'd say also think about the U.S. as a source of innovation and productivity. And

01:29we've seen that consistently throughout history, whether it's the Mag 7 more recently, the big tech

01:35players back in 99, 2000. But really, this is a hotbed. This very supportive environment for

01:41entrepreneurs, very supportive for innovation and very supportive of better productivity and growth

01:47generally. And we don't think that story is shifting. So we want to keep investing in areas

01:52that are growing, productive and innovative. And so we think the U.S. market still is a great place to do

01:58that.