Market volatility is part of the investing process. More than 7 times a year, investors should expect pullbacks of 3 percent and, at least once a year(since 1928), investors should be prepared for a 10 percent correction.
When viewed from a historical perspective, recent market activity isn’t as abnormal as one might think.
Panic is not a strategy, and keeping perspective when markets look uncertain is important. Remember the following when working through stress associated with market changes:
- Stay on course - avoid letting short-term losses trigger anxiety.
- Stay diversified - evolution is key during market changes. Diversification can offer opportunity.
- Don’t abandon your plan - understanding your position in the journey towards your retirement timeframe can help mitigate market downturns
*A diversified portfolio does not assure a profit or protect against loss in a declining market.
*All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.