
Things to Remember During Uncertain Times
While market volatility can be unsettling, it’s times like these when it’s important to remember we’re always keeping a watchful eye on your portfolio. And to help provide a little peace of mind, here are a few things to remember during uncertain times to help keep things in perspective.
Time is on your side.
Historically, the financial markets reward long-term investors. It’s important to understand volatility is normal in markets, but it’s generally a short-term phenomenon. Instead of getting fixated on what’s happening now, remember that prepared investors focus on the stability of a long-term plan.
Tune out the noise.
The media does a great job of eliciting emotional responses with their headlines. And sometimes it’s hard not to let our feelings get the best of us. Yes, it’s unnerving to experience volatility, but don’t let headlines pull your focus from the long-term returns of the market. Reactive changes can often lead to investors losing out on potential profits.
Review long-term trends.
When things get choppy, it’s nice to back up and look at the stock market’s long-term trends. For example, in the 1973-1974 stock market crash, the Dow Jones lost 45% of its value. However, the market not only recovered, but it returned 258% over the next 20 years.1
There’s always opportunity.
Focus on the advantages of a volatile market. It presents a chance to return positive yield benefits quickly. Oftentimes, high growth occurs very close to major pullbacks. With that said, it may also be a good time to consider rebalancing or reallocating your portfolio to mitigate overall risk.
Keep in touch.
As your trusted financial professionals, we understand market movements and we want to put your mind at ease. We’re here to serve you by making objective and educated financial decisions to help you stay the course. Together, we can achieve your financial goals.
As always, we’re here for you. If you have any immediate questions or concerns, please give us a call. We’re here to answer your questions, explain things to remember during uncertain times, and help you reach your long-term objectives.
1 https://www.fool.com/investing/5-psychological-tricks-for-keeping-calm-during-mar.aspx