Investing can be a little bit like a roller coaster ride. Here are a few reminders to help investors relax during these turbulent times.
Keep Your Eye on the Horizon
Expect ups and downs in the stock market. Historical data shows that despite intrayear declines averaging -14%, most years end with positive returns.
Stay in Your Seat
Avoid any attempt to time the market; by staying invested, you can avoid missing out on the best days. Missing even a few of these days can significantly reduce long-term returns.
Know Your Thrill Tolerance
Choose an asset allocation that matches your risk tolerance. Financial advisors can help build a diversified portfolio suited to your investment objectives and time horizons no matter how volatile or uncertain financial markets may be at the moment.
Amid market swings, it is easy to lose sight of the potential benefits of staying invested over the long run. While no one has a crystal ball, adopting a long-term perspective and sticking with a plan can help investors look beyond the headlines.
Conclusion
Investing can indeed be a thrilling (aka unnerving) ride, but with the right strategies and mindset, you can navigate the ups and downs with confidence. Remember to keep your eye on the horizon, stay in your seat, and know your thrill tolerance. By doing so, you’ll be better equipped to weather the market’s fluctuations and achieve your long-term financial goals. Happy investing is steady investing!
