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What to Do When Markets Drop

What to Do When Markets Drop

| May 09, 2016
Market Volatility

Dealing with the recent stock market volatility has been difficult for long-term investors. It would be a mistake, however, to overreact. Volatility in itself does not mean a downtrend in the market. The volatility will ease, and can even provide investment opportunities.

It is important to develop a comprehensive plan that is based on long-term fundamentals and to stick with that strategy. Studies have shown that jumping in and out of the market has a detrimental effect on investment returns. Successful market timing is very difficult because it requires getting out at the right time and getting back in at the right time.

In the worst of times, it’s easy to forget that market declines, even steep ones, have been a natural part of the economic cycle.

The recent market turmoil doesn't have to disrupt your life or your portfolio. Take a longer-term view for your investments. Turn off the TV. Keep the 4% market swing on the latest rumor in context. Stick with your plan…you will be rewarded over time!

Learn more - watch this video.