Preparing for a Tumultuous Summer: How to Navigate Market Turmoil

ST. LOUIS, MO – As the midyear point approaches, several factors continue to drive market volatility including global conflict, fears of recession, and the upcoming election cycle. While this uncertainty has left many investors to question their portfolio strategy, Buckingham Strategic Wealth is sharing three ways to ease your fears and take control during a tumultuous financial season.

Consider Buying I-Bonds
Investors looking for a safer investment, protected from inflation, should consider Series I Savings Bonds, issued by the U.S. Treasury Department. “As of May, I bonds are paying more than 9.5% which is an amazing return for a very safe investment,” said Susan Strasbaugh, Buckingham Strategic Wealth advisor. “With inflation higher than it has been in decades, I bonds are a great opportunity for investors with money to spare.” Individuals can buy up to $10,000 in I bonds per year. Purchases can be made online at treasurydirect.gov.

Stick to Your Plan Amid Political Uncertainty
With the midterm elections approaching, prepare for an onslaught of predictions about the market impact depending on which party controls Congress. Some will suggest investors reposition their portfolios, but keep historical context in mind before making a change. “It's important to remember that there has been no reliable pattern between a change in the control of Congress or the president and the future returns in the market,” said Daniel Campbell, CFA, Senior Investment Strategist at Buckingham Strategic Wealth. “The outcome of the election should not trigger you to sell off your portfolio. Investment planning is done for a reason and to help you achieve your goals,” Campbell said. Find more of Campbell’s research on the topic here.

Diversify Your Portfolio
Market uncertainty makes a diverse portfolio non-negotiable, according to Kevin Grogan, managing director of investment strategy at Buckingham. “When things are as unpredictable as they are now, your best move is to diversify your investments across as many sources of risk and return as you can,” Grogan said. “We believe this diversification should include international investments, despite the increased risk in overseas markets due to the war in Ukraine and the impacts of COVID-19. The market accounts for this risk with lower price-to-earnings ratios for global stocks compared to domestic.”

To speak with a financial advisor about implementing these and other tools for a successful investment strategy, visit buckinghamstrategicwealth.com/lets-chat.

The above strategies are for general and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Individuals should speak with a qualified professional based on their own circumstances. R-22-3891

About Buckingham Strategic Wealth
Buckingham Strategic Wealth (“BSW”), a Securities and Exchange Commission registered investment advisor providing an extensive range of fiduciary financial advisory services, supports individuals, families, nonprofits and organizations. With a passion to progress, serve, and do the right thing for clients at all times, Buckingham Strategic Wealth helps to fulfill client’s financial dreams using the organization’s proprietary Design. Build. Protect.™ methodology and an array of evidence-driven investment and planning strategies.

Headquartered in St. Louis, MO, Buckingham Strategic Wealth has 45 offices in 22 states. BSW along with the community of independent advisors that make up Buckingham Strategic Partners collectively manage or administer more than $62 billion dollars of assets (as of March 31, 2022). For more information, visit www.BuckinghamStrategicWealth.com.