How To Invest In A Volatile Market With The Help Of A Financial Advisor In Buffalo Grove IL

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Investment strategies are always a hot topic in the financial planning field. Investors want to know what their best options are, and advisors have to provide answers they can back up with research and logic. But how can an advisor help to mitigate volatility? And what should your personal asset allocation be?

The answer lies in diversification, which we’ll explore in this article. By understanding the many reasons for volatility, you can then invest wisely to strive for your financial goals. Inflation does not have to wreck your investment portfolio and retirement planning efforts.


Knowing when to hire a financial advisor is an essential part of crafting a comprehensive financial plan that can guide you to financial success, sooner than later. 


Reasons for volatility

Volatility is a normal part of the market. It occurs when investors are unsure which direction the market will take and they act accordingly. Volatility can be caused by a variety of factors, such as:

  • A lack of economic growth
  • Changes in exchange rates between currencies
  • Fear of global recession
  • Fear of recession in the U.S.

Appropriate asset allocation depends on you

A financial advisor can help you determine your needs and goals, create an investment plan that works for you, promote diversification across asset classes, and provide advice in times of uncertainty. A financial advisor should have experience with all types of investing strategies, and remind you to not panic, buy/sell investments, or move assets into riskier investments when anticipated market volatility arises.

If you’re interested in finding out more about how to invest in a volatile market with the help of a local financial advisor in Buffalo Grove, IL, talk to a CERTIFIED FINANCIAL PLANNER™ at SGL Financial. Our team is here to help you develop your financial freedom so you can have peace of mind. With our support, we can move your tactical investing efforts to more strategic investing.

Read: 13 Tax-Smart Investor Strategies to Consider Now


Diversifying your portfolio is an important part of investing. Diversification can help you avoid losses in a down market, which means that you’re less likely to lose money than other investors who

Investment management. Portfolio diversification.

are putting all their eggs in one basket.

Diversification is also a great way to balance risk, so if one asset class performs poorly (like stocks), another might perform well (like bonds), which helps keep your investments on track.

At SGL, we believe in highly-diversified portfolios, including mutual funds which contain baskets of tens of thousands of different stocks, bonds, alternatives, etc. so that during periods of market volatility the investments you hold are already broadly diversified from the start. This approach is what can provide you peace of mind in volatile times. 

Because you know your plan was built to handle this versus having to change course at the first sight of choppy markets.

Alternative investments

Alternative investments can be a great option for investors seeking more than just stocks and bonds. Alternatives like real estate, commodities, and private equity can be included in a diverse portfolio.

They also have the potential to be lucrative, so risks may apply. That’s why it’s vital to understand them before diving in. Your financial advisor can help you decide whether an alternative investment is right for your portfolio. Ask us about certain investment options you are curious about.

Pay down debt

Paying off high-interest debt like a credit card balance with an 18% interest rate should be a top priority. The same goes for any other loans that have high-interest rates, such as auto loans or home equity lines of credit (HELOCs). In general, it can be advantageous to prioritize paying off the highest interest rate first, then move down the list as you need to make payments on different loans.


Rebalancing your portfolio periodically can help you maintain your desired asset allocation. How often you rebalance depends on how close you are to your original target mix and how volatile the market is at that time. 

  • If you’re investing for the next five years, it could make sense to do it once every six months or so. 
  • If you’re more focused on the long term and have more flexibility in terms of market fluctuations, quarterly may be better suited for you.
  • Other investors feel comfortable rebalancing once annually with the help of their financial advisor.

Rebalancing is a respectable method to bring your portfolio’s allocation back into line with its original target mix by selling some investments that have appreciated significantly in value and buying others that have lost ground since they were last bought (or sold).

Financial advisors can help you make smart financial decisions at any stage of life.

Trusted Financial Advisor.

Whether you’re saving for a down payment on your first home, or you’re looking to retire comfortably in your sixties, a financial advisor can help you make smart financial decisions at any stage of life. A good advisor will ask a host of questions about your current situation, your goals, and risk tolerance in order to understand how best to invest your money. Your time horizon plays a big role in your investment strategy, so be open to new ideas to make your wealth expand, especially in a volatile market. 

Take a look at these four questions that should guide your investment plan.

Work with SGL Financial 

With the help of a fiduciary financial advisor in Buffalo Grove, IL, you can learn how to invest in any market condition and make sound decisions no matter what type of investor you are. If you want to invest in stocks or mutual funds, you will need to rebalance your portfolio by purchasing more low-risk securities when prices rise too high and selling high-risk investments when they fall too low. If you plan on buying real estate or starting a business, don’t wait for perfect conditions before taking action—make sure to keep an eye on market trends so that you don’t miss any opportunities.

At SGL Financial, we choose to be proactive in our approach to prevent any issues that may arise when guiding you into your financial future. 


By continuously refining our methods, we provide the best possible service for you and your family. Give us a call to share your financial situation in confidence and let’s explore the solutions to support your financial goals. We look forward to working with you long-term.