A disciplined approach to investing
Vanguard CEO Tim Buckley shares his views on investment philosophy and taking a disciplined approach in a volatile market environment.
Hello. I’m Tim Buckley, Vanguard’s CEO.
Recent events have added a new dimension of risk to the markets.
Beyond the very real human cost, the invasion of Ukraine by Russian forces has resulted in increased market volatility and significant sanctions. Further economic costs in the form of rising energy prices and additional supply chain risks are likely to follow.
We all know that risk and volatility are part of investing, but they can test us. It is tempting to move to the sidelines until the uncertainty passes.
Whether the markets have reacted to geopolitical risk, fears of inflation, or even a pandemic, time has shown that the best strategy is to stay diversified and invested. Don’t overthink it. In 30 years, I have yet to meet the investor who can successfully decide both when to exit the market and when to get back in. Rebounds can come as quickly and as unexpectedly as the selloffs they follow.
If you maintain your perspective and focus on the long term, you will come out closer to your goals. If those goals haven’t changed, your investment approach shouldn’t either – even in times like these.
The history of geopolitical risks demonstrates that markets are resilient. Over time, inevitable market valleys give way to higher peaks. Stay focused on your goals and maintain your disciplined approach.
As always, we’re here to support you, our valued clients.
Thank you for your trust in Vanguard.
All investing is subject to risk, including the possible loss of the money you invest.
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