Watching the stock market and your investments decline is scary and unsettling. Your first reaction might be to “get out of the market”. But sometimes doing nothing is the best course of action. You have a specific plan for your investments that guides us to create the appropriate portfolio for you. That doesn’t mean, in an environment like we are in now, that your investments will not experience volatility. However, panicking and “reacting” to market drops is not an investment policy. Like the hurricanes we experience in southeast Louisiana, we have to have a plan in place and hunker down to weather the storm. For long-term investors, selling your investments in a declining market may lead to failure of your goals. The risk is not that you stay in the market and your investments decline another 10%-15%, the risk is not being IN the market when it turns and begins its inevitable rise. For more information, watch the video below.
|An amusing and whimsical look at behavioral finance best practices for investors.
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.