Fall is such a beautiful time of the year, with the crisp autumn air, rich colors and lower light reflecting beautifully off the lake. Hiking in a local land conservancy, I saw a family coming toward me. A very young boy was scooting along the trail in front of his dad, completely oblivious to my approach. I greeted his father and the boy looked up at me, momentarily contemplated a friendly stranger in the woods and then continued bounding down the trail.

A little further back, his mother was walking with his sister. She was a little bit older than her brother and had heard my greeting. As I said hello to her mother, the little girl froze and put her hands over her face. Looking down at her in the middle of the trail, I winked up at her mother and said “Oh my, just where did that little girl go?” She was incredibly cute as I walked past, peeking between her fingers and moving only after I had passed.

I was falling back into my nature hiking trance when it hit me: what the little girl did that was so cute is exactly what is so frustrating with the current state of policymakers, both here and abroad. Whether the issue is domestic deficits, entitlement programs or the financial condition of European nations or banks, policymakers seem to think that if they hide from their problems, maybe they will just disappear.

Unfortunately, investors can’t ignore these problems. And when our leaders continue to kick issues down the road in the hope that they will resolve themselves, it creates an environment where investors are left dealing with a very high degree of uncertainty. This isn’t an opinion – it’s a fact. Market volatility is higher than at any point since the financial crisis of 2008. Business confidence remains at record lows as corporations hold cash and wait for more clarity from policymakers. What the policymakers are unable to resolve, the markets will deal with through discipline, resolution and, ultimately, change.

While investors can’t control these issues, they can do things to help protect their investments and financial futures in this environment. One is to remain flexible. It makes sense to be defensive but also cognizant of the fact that great investing opportunities often arise during periods of uncertainty. Another is to engage in more active planning that will help keep you on top of your investments. Given the current high level of correlation among asset classes, flexible tactical strategies make sense to supplement strategic asset allocations.

Covering your eyes or not opening your financial statements will not serve you well in this volatile investment environment. Communication is critical, and your Baird Financial Advisor works best when he or she is informed about changes to your situation or concerns you may have.