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Complacency is a killer in this market: Hughes

Kevin Chupka
Executive Producer/Writer

Is all this market volatility making you nervous? Are you just sitting on the sidelines in cash waiting for your moment to strike? That may be safe but it’s the wrong way to play it says Danielle Hughes of Divine Capital.

“I think we’re gonna see a lot more volatility frankly and I think the individual investor is looking at this global cacophony and saying ‘what am i supposed to do here,’” she notes. “You’ve got to keep an eye on the big picture. Payrolls are actually doing pretty well. Yes we were disappointed in December, yes we were disappointed in January but overall we’re going in the right direction, global growth going in the right direction.”

Hughes says the key then is to stay the course and keep your focus on the long term. While international market like Turley are oddly impacting our finances here at home Hughes says it’s not cause for long-term alarm.

“There’s a lot of money slushing around looking for somewhere to go and when you have that much money looking for risk you’re going to get these really volatile movements,” she says.

In short Hughes says to “put your fingers in your ears” and ignore all the chatter. That’s not to say you should have all your money working for you. A little cash could turn into a golden opportunity if the markets suffer a 20% correction, something Hughes isn’t calling for but is preparing for.

Comparing the markets to dieting she notes, “you get on the scale every single day one day you’re gonna have an up day where you’re up day where you’re up four pounds...stay disciplined, stay on it because over time you’ll win.”