History shows markets fluctuate—sometimes for days, weeks, or months.
When markets drop, it’s tempting to react impulsively by selling stocks or changing your portfolio. But history shows markets fluctuate—sometimes for days, weeks, or months. Accept the predictable unpredictability of the market. If that seems tough, keep these points in mind:
- Retirement accounts are set up for long-term investing. Focus on your long-term goals and try to ignore short-term market ups and downs.
- Having clear, prioritized retirement and investment goals will keep you on track, no matter how the market fluctuates. Good financial goals and a solid long-term financial plan can help weather short-term volatility and the impacts of inflation and other economic conditions.
- A well-diversified portfolio can alleviate some of the effects when the market declines. You want to diversify across, and within, the major asset classes, keeping in mind that investments fluctuate in price.
- Take advantage of opportunities to build up your finances by paying down debt, maintaining an emergency fund, and saving up for larger expenses such as a house or vacation.
- Protect your money by staying vigilant for fraud. There are no “risk-free” returns, so be cautious of anyone offering such guarantees. Avoid fraud by working only with registered investment professionals verified through FINRA BrokerCheck and adhering to your established financial plan.
- The Guaranteed Stable Investment through Member Benefits is one option to consider as part of your long-term strategy. Learn more about its role in your portfolio at weabenefits.com/understanding-stable-value-investing.
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.