Lowell on CNBC: Impeachment Process and Market Volatility

Chief Investment Officer Jim Lowell joined CNBC’s “Street Signs” to discuss the presidential impeachment inquiry’s potential impact on stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. market volatilityA measure of how large the changes in an asset’s price are. The more volatile an asset, the more likely that its price will experience sharp rises and steep drops over time. The more volatile an asset is, the riskier it is to invest in.. Jim emphasized that although the proceedings may dominate short-term headlines, our economy’s long-term fundamentals will likely remain unchanged. Jim remarked, “I think this will be a nervous time to be an investor but if you’re disciplined it could also be a great time to add some of your best ideas at discounted prices … You stay vigilant. You stay focused on your long-term investment goals while also safeguarding your shorter-term income needs.” Jim further emphasized, “We think that making sure you have your buffers in place—having actively managed bondsA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. and even cash reserves makes good sense even if you’re a growth investor … We think those buffers will play a measurable role in smoothing some of what we expect will be heightened volatility and enable you to stay the investment course.”