By Todd Youngdahl, CFP® and Maura Schauss, CFP®
Many investors, especially those currently seeing major losses due to COVID-19’s impact on the markets, have developed a low tolerance for volatility. As a result, they have moved a significant portion of their investments into bonds or other fixed yield vehicles. What many investors may not realize is that large changes from one asset class to another in order to avoid volatility, can actually increase it. Secondly, for investors with a long-term perspective on their investments, volatility is actually a good thing, as it is the primary driver behind the sustained market gains over the last century.