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The Sky is Not Falling! - Here’s How To Deal With Market Volatility

The Sky is Not Falling! - Here’s How To Deal With Market Volatility

| June 22, 2022
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.The volatility we’ve seen in the past few months can be frustrating and scary. The good news is that the skies are still blue in Roswell, and there are strategies for dealing with market ups and downs. Instead of spending your time worrying, the best course of action is to stick to your financial plan.   

“A great lesson of life is to match your response with the time horizon of your goal. Near-term matters require action & intensity, while longer-term goals command patience & consistency.” - Scott Inman, Financial Advisor and Former Arizona Razorback Pre-Game Host 

Focusing on the Long Game 

Market volatility is unavoidable. Like the change of seasons, markets move through stages of growth, slowing down and speeding up. Unfortunately, the timing of those cycles is unpredictable. While dramatic moves in the market may make you question your investment plan, it’s important to remember not to panic. When the market does drop, history has shown that those who stick to their plan are rewarded for their patience more often than not. 

When your news feed is filled with messages about struggling markets, the best thing you can do during times like these is to center on what matters. Keeping the focus on your long-term investment goals can help quiet the media noise around you and help prevent you from making rash investment decisions that don’t follow your long-term plans. 

“Chicken Little” Strategies 

It’s a challenge to see your retirement investments go up in value one day and down the next. It’s even harder to see them go down day after day. As recent volatility shows, no strategy can guarantee positive returns. Still, it’s worth remembering these long-term fundamental principles of investing, especially in difficult market environments: 

  • Keep Things In Perspective 

Some recent declines in the Dow Jones Industrial Average may have been in the hundreds or even topping one thousand points. As the index price has risen over the years, these large-point moves become less significant on a percentage basis. Keeping current market news in perspective can be important, especially during periods of volatility. 

  • Focus On Your Plan 

During times like these, the important thing to remember is to not immediately react to drastic changes based on current market conditions and to stick to your plan. As a financial firm that monitors the market for their clients daily, we factor in potential volatility as a potential impact on client portfolios.  

  • Talk To Us  

We’re here to help keep you on track. We will always walk you through all your choices and provide insights, always keeping your best interest in mind. If you have any questions, please feel free to reach out to either review your portfolio or to get one started with us today. 

The Bottom Line 

Even when the market drops, your investment goals are unlikely to change in the long run. Long-term strategies can be a great way to have your goals align with your risk tolerance, liquidity needs, and time horizons. There will always be questions when volatility hits. We’re here to help provide you with a useful historical perspective and guidance that will help set you up for long-term success. 

-Mark and Trent 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

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