Financial Literacy 101: Market Volatility

January 24, 2019

A PLAN TO STAY THE COURSE

Volatile markets and a stream of ominous headlines can put investors on edge and have them questioning their long-term investment strategies. While market volatility is an inevitable part of investing, throughout time markets have generally rewarded investors who maintain a long-term investment strategy instead of reacting to cycles of turbulence in the markets.

As we approach a decade of significant stock market gains, market volatility has increased as a result of investor concerns about a fast-growing. This could force the Federal Reserve to raise interest rates faster than planned. So what is a retirement investor to do?

TAKE A BREATH AND STAY THE COURSE!

Don’t let headlines drive your investment strategy. Resist the emotional reaction to sell investments or time this market. Back in March 2009, the Standard & Poor’s 500 Index (S&P 500) was down 54%, but the market rebounded and delivered a historic bull rally. Retirement plans are inherently long-term investments. Short-term market volatility shouldn’t change long-term saving or investing strategies…

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