With uncertainty swirling over the coronavirus (COVID-19), the markets are undoubtedly taking a hit. And 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 its long-term interests.
To help put things in perspective, we wanted to share a few thoughts to keep in-mind during these uncertain times:
- 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 and help you reach your long-term objectives.
----
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
[1] https://www.fool.com/investing/5-psychological-tricks-for-keeping-calm-during-mar.aspx