Investing in a Volatile Market: What Calgary Professionals Should Know

Investing in a Volatile Market: What Calgary Professionals Should Know

Investment market volatility can be unsettling—even for seasoned investors. Sudden swings, recession talk, and global uncertainty often lead to one of two reactions: panic selling or complete paralysis.

But investment volatility isn’t something to avoid—it’s something to prepare for and manage.

For Calgary professionals, business owners, and retirees, market swings are a fact of life. The key is to build a wealth management plan with your financial advisor in Calgary that works with volatility instead of reacting to it.

Here’s what you need to know to stay confident and strategic in uncertain investment markets.

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1. Investment Market Volatility Is Normal—And Necessary

Despite what the headlines suggest, investment market volatility is not unusual. In fact:

• The S&P 500 has averaged large intra-year drops annually since 1980
• Most years still end positive
• Pullbacks create buying opportunities and rebalancing triggers

Investment market volatility reflects uncertainty and shifting investor expectations. But over time, the market rewards discipline and wealth management strategy, not timing.

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2. Have a Written Investment Policy or Strategy

A written investment policy or wealth management strategy acts as your guardrail during investment market swings. It outlines:

• Your long-term goals
• Target investment asset allocation
• Risk tolerance and time horizon
• Rebalancing triggers
• Tax efficiency strategies

At MRG Wealth Management, our clients work with a financial advisor in Calgary that provides discretionary portfolio management, which means their portfolios are adjusted automatically based on their goals, risk tolerance, and market conditions—without emotional interference.

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3. Don’t Try to Time the Stock Market

Trying to guess the top or bottom is a fool’s game. Even missing a handful of strong recovery days can drastically impact long-term returns.

Example:

• Missing the 10 best days in a 20-year period can cut your return by nearly 50%

Instead of chasing headlines:

• Stick to a consistent wealth management strategy
• Keep contributing to investment accounts during down markets
• Rebalance as opportunities arise

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4. Rebalancing Is a Built-In Discipline Tool

When the investment markets drop, equities have historically declined faster than bonds or alternatives, which can throw your investment portfolio off balance.

A disciplined investment rebalancing approach:

• Buys low and sells high automatically
• Keeps your risk profile in check
• Avoids the temptation to overcorrect

Our clients’ investment portfolios are rebalanced when thresholds are breached—not on emotion, but on objective portfolio math.

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5. Review Your Liquidity and Emergency Planning

Volatile periods are a great reminder to:

• Keep 3–6 months of expenses in a high-interest cash reserve
• Maintain access to low-risk investments for flexibility
• Avoid selling long-term holdings for short-term needs

If you’re retired, using a cash wedge or bucket strategy can help fund withdrawals without disrupting growth assets during downturns.

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6. Stay Diversified—Especially Across Asset Classes

In turbulent markets, investment diversification works better than ever. Consider exposure to:

• Equities across Canada, U.S., and global markets
• Bonds of varying durations and credit quality
• Real assets like infrastructure and real estate
• Alternatives (private credit, private equity) for non-correlated returns

Diversification reduces the impact of any single event and can keep your portfolio resilient over time.  Important to discuss your specific situation with a qualified financial advisor in Calgary.

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7. Talk to Your Financial Advisor Before Making Big Changes

Emotional investment decisions during volatile periods often result in:

• Realizing losses unnecessarily
• Triggering taxes or penalties
• Locking in lower yields or returns

Instead, use investment volatility as a reason to:

• Review your wealth management plan
• Evaluate new opportunities (e.g., tax-loss harvesting, reallocation)
• Reaffirm your long-term goals

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Invest with Confidence—Even in Uncertain Markets

At MRG Wealth Management, we help Calgary professionals, business owners, and retirees navigate volatility without fear. As your Personal CFO, we manage your investments with discipline, structure, and an integrated wealth management strategy—so you don’t have to guess what to do next.

Book a complimentary introduction call and learn how our institutional wealth management approach can help you stay on track, no matter what the market does.

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