It’s easy to feel elated by rising markets or discouraged by a sudden drop in prices. But what about erratic peaks and valleys? Rising waters may cause all boats to rise, but do you have what it takes to hang ten on the big waves?
The truth is that you do. Volatility comes and goes, but when you are investing money, your real concern is the long-term outcome. Planning for the future often means accepting and planning for some volatility.1,2
What to do when the unexpected arrives? According to Jack Bogle, chief executive and founder of Vanguard, “The advice is to stay the course […] The markets are too short-term oriented. They don’t look ahead. They are too opportunistic.”1
This doesn’t just apply to situations like the recent Presidential election, but other events around the world that might startle the markets. Big events, both man-made and natural, can spur investors to sell. In many cases, it’s better to ride out the wave and see where things land.1,2
A good example of this is the recent “Brexit” referendum in the United Kingdom. Markets reacted badly, but in a matter of weeks, they returned to where they were. It was even faster after the U.S. election, with markets reaching unforeseen highs only a day later.
Staying the course, with the advice of a trusted financial professional, your investments may weather many stormy seas over your lifetime.1,2
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
Citations.
1 – reuters.com/article/us-datadive-markets-idUSKBN13620P [11/11/16]
2 – journalgazette.net/business/Stay-course-amid-market-swings-16235971 [11/10/16]