How to Stay Calm When Markets Get Scary

Election and Fed rate hike fears have turned the market choppy. Yvette Butler, president of Capital One Investing, said scary markets can serve as reminder to assess goals and performance.

Author:: Gregg Greenberg
Publish date:: Sep 19, 2016 3:04 PM EDT

The VIX, or so called fear index, has surged 33% since Labor Day, from 12 to 16, as election and Fed rate hike fears have turned the market choppy. Yvette Butler, president of Capital One (COF) - Get Report Investing, said scary markets can serve as reminder to assess goals and performance. In her view, September is a great time for investors to check-in on their strategy and revisit their portfolios. She advises investors talk to their advisors about decisions that may pay off in the future, like setting up or maxing out an IRA. "Ask your advisor to review your holdings to make sure you are suitably diversified. If a significant portion of your investments are vulnerable to the same market dynamics, you may wish to discuss recalibrating your asset allocation over time to create a safer, more risk-averse portfolio." On the topic of rebalancing, Butler said she does not recommend "reacting" to market events or volatility, as that can lead investors to sell low. Rather, she suggests quarterly or twice yearly check-ins with an advisor.