With so much going on in the world today, it’s natural to feel anxious about the state of your finances. That’s why our team at Custer Burish Financial Services is here to answer your questions, keep you informed, and help you remain confident. Staying focused on the big picture is important during periods of market volatility.
When it comes to market volatility, learning from past experience can help you navigate the present and plan for the future. Custer Burish Financial Services has been navigating a rapidly changing world for more than forty years, and we’ve learned many important lessons along the way. Regardless of how the world continues to change, we’re here to support you as we face the future together.
Fluctuations are a normal part of the market cycle, but the long-term trend of the market is up. History shows that staying the course during difficult times can pay off in the long run, because market recoveries typically follow downturns.
The choices an investor makes during a market decline can have a major impact on long-term goals. Investors who attempt to “time the market” may risk missing periods of exceptional returns. Considering the opportunity loss, it may make sense to remain steadfast in your investments and stay the course.
Since you can’t control the markets’ ups and downs, what can you do to help minimize the impact on your savings? Reviewing your asset allocation and diversifying your investment options are two important actions you can take to help manage your investment risk.
Over time, periods of high returns tend to offset periods of low returns. Holding investments for a longer time typically tends to lessen overall volatility. This may provide some reassurance during a market downturn.
A dedicated savings account for emergencies may help safeguard your financial future against the unexpected so you can remain financially secure if any large or unplanned expenses arise.