Focus on the future
While the financial news can be troublesome, history has shown that patient investors
who remained focused on their long-term goals have withstood turbulent periods.
That’s why it’s important to stay committed to your long-term strategy. As many
of us have heard time and again, investing is a long-term strategy. However, it’s
a message well worth repeating, especially in trying economic times. As you think
long term, you should also consider the following:
Diversify
Look at spreading your investments across different asset classes and among different
market sectors. Remember that diversification does not ensure a profit or protect
against loss in a declining market. It is a tool used to reduce risk.
Reassess your risk tolerance and time horizon
How much volatility are you willing to accept in your portfolio, and how many more
years of active investing are ahead of you?
Stay invested
While there are no guarantees if or when a down market will turn around, we believe
one of the worst mistakes investors can make is to pull money out as it falls and
reinvest after the rebound.
While the financial news can be troublesome, history has shown that patient investors
who remained focused on their long-term goals have withstood turbulent periods.
It is important to stay committed to your long-term strategy. Learn more about investing principles for the long-term investor.