GEOPOLITICAL RISK: IS YOUR MONEY REALLY SAFE?
FROM BALTIMORE WASHINGTON FINANCIAL ADVISORS
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Sandy Hornor | CEPS
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Tessa Hall
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About This Episode
Geopolitical risk can be unsettling for investors, especially during periods of market volatility. In this episode, BWFA advisor Sandy is joined by Tessa to discuss how global events impact markets, why reacting emotionally can be costly, and how diversification and planning help investors stay disciplined during uncertain times.
Full Description
Geopolitical risk can make even experienced investors uneasy. Global tensions and unexpected crises influence markets and shake investor confidence. In this episode of Healthy, Wealthy & Wise, BWFA advisor Sandy joins Tessa to examine how geopolitical risk affects markets and, more importantly, how investors should respond when uncertainty dominates the news cycle.
The discussion highlights a counterintuitive but critical point: in most cases, investors benefit from doing very little. While global events can feel tragic and unsettling, markets often absorb their impact quickly. History shows that even severe events usually cause temporary disruptions rather than lasting damage for long-term investors.
Sandy and Tessa review past examples, including wartime events, terrorist attacks, and the COVID-19 market shock, to show how markets recovered over time. These moments underscore the value of a long-term perspective and explain why reacting to headlines often locks in losses instead of protecting portfolios.
The episode also explores diversification. Rather than avoiding international investments during periods of geopolitical tension, Sandy explains why broad diversification remains essential. Markets rotate, leadership changes, and global exposure reduces reliance on any single region or outcome. Recent years have reinforced how risky it can be to abandon diversification based on short-term performance.
For retirees and those nearing retirement, the conversation turns to planning for volatility. Sandy explains how income planning and non-market-correlated assets help maintain stability during market declines. A well-structured plan allows investors to weather downturns without disrupting their lifestyle or long-term goals.
Ultimately, the episode reinforces a simple truth: market volatility is inevitable, but panic is optional. With a disciplined strategy, thoughtful diversification, and a clear financial plan, investors can stay focused on what matters most, even when the world feels uncertain.
For more information, visit BWFA’s Financial Planning Services.
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