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Market volatility happens

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Brenda EcheverriaHistory clearly illustrates that the market will drop some days, sometimes for weeks or months...and the market will go up some days, sometimes for weeks or months. That’s how it works.

Accept the predictable unpredictableness of the market. If you’re thinking “easier said than done,” remember:

  • Retirement accounts are set up for long-term investing. Focus on your long-term goals and try to ignore short-term volatility.
  • Some volatility is healthy for the market. After a long period of mild volatility, recent drops may have appeared shocking to you, but economists say a correction was overdue.
  • Mutual funds are generally long-term investments and not designed for frequent changes/trades.
  • A well-diversified portfolio will help alleviate some of the effects when a correction occurs.

If you are experiencing more volatility than you’re comfortable with, it might be wise to take a look at your portfolio. Contact us at 1-800-279-4030 if you need help or have questions.

Brenda Echeverria, Financial Planner