PRINCIPLE #5: VOLATILITY IS NORMAL; DON'T LET IT DERAIL YOU
IS THERE ALWAYS A LIGHT AT THE END OF THE TUNNEL? NOT IF YOU CUT YOUR TRIP SHORT.
A long-term view can help keep investors on track – and even turn pull-backs into buying opportunities. Let’s navigate the market to build stronger portfolios.
Seeing through the noise
Every year has its rough patches. The red dots on this chart represent the maximum intra-year decline in every calendar year for the S&P 500, since 1980. While these pull-backs can’t be predicted, they can be expected; after all, markets suffered double digit declines in 21 of the last 38 years.
But despite the many pull-backs, roughly 75% of those years ended with positive returns, as reflected by the gray bars. Investors need a plan for riding out volatile periods instead of reacting emotionally.
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USE EVERY ASSET CLASS TO YOUR ADVANTAGE
We offer investment strategies covering all asset classes for diversification and risk management to help you and your clients build stronger portfolios.
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.