Volatility vs. The Stock Market | The current volatility of the stock market seems daunting and can cause some tension. While the shake-ups in the market is certainly cause for pause, it is important to keep perspective. Investment decisions should be based on sound principles, and good information rather than out of worry. We keep an eye on the long term, and encourage you to do the same!
While that's easier said than done, the following perspectives may help with keeping focus and holding onto patience: |
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The Market is a Coaster - Highs and Lows are Natural | While many factors influence stock prices and the market at large, news and events such as political and election campaigns, foreign policy, and large business moves are among the largest. Events that touch more than one of these criteria can cause more market volatility, such as the outbreak and management of the Coronavirus.
However it is the up and down movement of the market that enables growth. Some investors can look at a volatile market and make decisions that could prevent them from taking advantage of the market movement, moving their investments at a time that may not be opportune for growth in their portfolio. |
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Buy Low - Sell High | The advice your parent's generation handed down to you still holds true! Stock prices are low while the market is correcting or pulling back. Taking advantage and buying into the market, or increasing the amount you are investing is something we absolutely encourage talking to your advisor about to see if it fits with your financial plan.
Just remember, it's easy to focus on the short-term effect the market correction may have on an account balance; but do not give in to fear! Savvy investors recognize this is the time for patient planning. |
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Helping you Make Smart Decisions | It's important to us that you feel secure, and that you feel empowered to make the right decisions. With a practice built on loyalty, clear conversational style education, and a genuine interest in your comfort and care, we are ready to help you make the smart decisions. If you have any questions or concerns at all, please don't hesitate in reaching out to your advisor. |
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Consider your Investment Horizon | While our crystal balls may look pretty, they won't tell us what the market will look like in the future - time may be your greatest ally! Consider the advantages: Before making any investment changes during market volatility, thing about the impact of your choices on your goals. Remember, your advisor is here to help you stay and steady the course. |
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