Here Is How to Navigate Volatile Stock Markets in 2016 and Beyond

An overwhelming number of investors expect volatile markets in 2016, according to a new survey from Wells Fargo and Gallup. Some 75 percent of respondents expect choppiness in the markets and 16 percent of this cohort are bracing for ‘highly volatile’ markets. ‘As we look at where the markets have been – largely flat for the year – investors are taking a look at their overall portfolios to see how can they best position themselves to ride out some of that volatility, said Zar Toolan, director of advice quality at Wells Fargo Advisors, based in St. Louis. In terms of navigating markets during volatile times, some sectors do better than others. Toolan likes cyclical sectors and is overweight on consumer discretionary, industrials and information technology sectors. ‘Clearly it’s going to come down to individual investors looking at their broader plan,’ he said. While investors tend to be anxious over volatility, it’s merely turbulence and doesn’t mean that the markets will move lower. Toolan speaks with Scott Gamm in New York.