Higher inflation and market volatility have suddenly changed investors’ perceptions of risk and uncertainty. Many may be thinking now is the time to get out of the market. However, historical evidence suggests that we can’t predict where the market is going, and you can miss out on large returns if you are not consistently invested and fail to time the market. Many investors learned this lesson the hard way at the onset of the pandemic. In addition, not all investments react to economic events in the same way and at the same time. Having a broadly diversified portfolio across different types of stocks and bonds across many countries can help smooth out the effects of uncertainty about particular markets. Inflation protection and a goals-based allocation can improve the risk management side of your portfolio.

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