The Nova Scotia Securities Commission has issued a bulletin advising investors not to panic when dealing with volatile markets.

The NSSC says that in these volatile markets investors should keep things in perspective. “Remember your investment goals, and above all, don’t panic. Coping with volatility can be tough on the nerves,” it notes.

“Legitimate financial professionals, if serving their client’s interests first, generally do not recommend changes to investment portfolios based on short term economic news and market volatility,” the NSSC says, adding, “Beware of scam artists, who play on people’s desires, fears and insecurities to keep them interested and pressure them into fraudulent investments.”

Investors nearing retirement are particularly at risk of being targeted by phony investment schemes promising high returns to make up for losses in retirement accounts, it adds.

The NSSC urges investors not to let uncertainty over current market conditions to lead them into fraudulent investment schemes that could weaken or devastate their financial position. “A hasty decision often can make a bad situation worse,” it warns.

The commission counsels that investors should stay calm, ignore promises of quick and easy returns, and guard against high-pressure sales pitches for unregistered securities and nontraditional investments.

“This does not mean you should do nothing. If you have concerns about your investment portfolio, talk to your financial advisor about your options,” it adds. “Remember the benefits of maintaining a well diversified portfolio. Having a variety of investments can help offset the impact poor performers may have on your portfolio, while taking advantage of the earning potential of the rest.”