Most people are not aware just how often financial market downturns occur. Financial markets are known to dip like an elevator (fast) and rise like taking the stairs (slow & steady). While you might prefer to ride in the elevator up, remember that markets rise based on fundamentals and technicals: earnings, growth, yields, yield curves, federal reserve moves, political, geopolitical events, etc. Drops typically occur due to fear of the unknown. If you plan ahead for your goals and needs, you can rest assured the markets are not something to worry about on a daily basis.
Every investor is different.
Your investments should take into account your investment needs, time horizon, and financial goals. Diversifying your portfolio by investing not only in equities and fixed income funds, but also in commodities, market neutrals, and even cash during volatile times can help reduce overall portfolio volatility.
Your long-term success starts with a long-term plan.
Many Americans would rather do anything else rather than build a budget and financial plan including an investment plan; however, it can provide you the best success. Talk to your adviser today.
