Charles Schwab Canada reports that although most of Schwab’s branches and all of its call centers are fully operational, there may be some locations closed in New York City and Washington, D.C. to ensure the safety of employees.

The firm urged clients to keep their long-term objectives in mind in the face of expected short-term volatility. Schwab Canada convened a special meeting of the Asset Allocation committee on this issue, and it suggests to investors, “We urge clients that have had the discipline to construct solid investment portfolios to stay the course and maintain their focus on their long-term investment plan. Our Asset Allocation Committee has decided to continue with a neutral recommendation on equity weightings. This means that investors should not deviate from their long-term stock allocation targets.”

Schwab Canada said that it expects volatile trading when North American markets eventually re-open. “We strongly urge clients not to allow their emotions to drive short-term investment decisions … experience tells us that investors often regret impulsive investment choices. The world’s central banks have already responded by providing $80 billion in liquidity to financial institutions and are widely expected to lower interest rates in a concerted manner to increase confidence.”

While volatility usually spells opportunity for hardcore traders, Schwab says it also discourages clients from trying to capitalize on apparent short-term trading opportunities that may arise. “Speculative strategies such as selling short, initiating uncovered option positions, or anticipating commodity movements should be considered a higher than normal risk. The reactions of institutional and retail investors under such emotional circumstances will be highly unpredictable. As investors learned from the past year’s decline in technology and telecommunication stocks, short-term momentum-based strategies can result in significant losses.”

It says that in the coming days, we will continue to assess the potential implications for various asset classes and industry sectors. “Investors should monitor their portfolios closely for levels of over or under concentration. Dramatic price movements could quickly alter the composition of even well-structured portfolios. Investors should continue to look for opportunities to purchase companies that exhibit strong fundamentals and trade at reasonable valuation levels, providing it is taken from the context of building a long-term portfolio.”