The simple fact investors need to remember is no one knows for sure what’s going to happen in the future. As a result, there’s always uncertainty when it comes to investing – whether the markets are moving up, down, or sideways. That begs the question:
How do you manage investments in an uncertain world?
While it’s impossible to eliminate uncertainty, strategies are available to help mitigate the potential impact on your portfolio. The “Managing Investments in an Uncertain World” report from Wells Fargo Investment Institute, looks at these primary uncertainties and offers pointers for potentially dealing with them:
- Longevity: how long we expect to live
- Inflation: how much we expect our money’s purchasing power to be eroded over time
- Market performance: what we expect our investments to achieve between now and when we need to tap into them