One of the risks that all investors must manage is geopolitical uncertainty. Headlines on regional and global crises are not only alarming but can take investors by surprise since they are often beyond the typical business and market news flow. To make this even more challenging, managing these risks usually has less to do with adjusting one's portfolio than about managing expectations and staying level-headed. How can long-term investors stay calm in the face of global events today?

1. Client Update - August 17, 2021
Paul Caylor, CDFA, CFP, CKA, RICP | President & Wealth Advisor | August 16, 2021

2. • The stock market has performed extremely well since the Great Depression - a nearly century-long
period.
• This occurred despite problems along the way throughout the 20th and early 21st century.
• Investors should focus on the long run in order to benefit from growth.

3. • Global markets have performed well over the past two market cycles, despite recent volatility.
• However, it is clear that each market behaves in unique ways. EM is historically the most volatile of the
three regions.
• Investors who stay disciplined have historically been rewarded over the long run.

4. • Earnings growth and valuations are two important metrics when comparing regions and asset classes.
• The U.S. market is the most expensive due to its strong market recovery.
• Other international markets are still cheaper, especially emerging markets, even as they recover.

6. Prudent Wealth Disclosures
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services
Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Prudent Wealth is not affiliated with Kestra IS or Kestra AS.
not provide tax or legal advice. https://www.kestrafinancial.com/disclosures