As 2018 came to an end, it was hard not to notice the historic volatility in the stock market. In order to help address the question of what to do in this type of market environment, we would like to share an American Funds Investor Resource which discusses this exact issue.
At Storen, we agree with the message the piece conveys, “long term investors are best served by being patient and staying invested in the markets.” As individual goals and time horizons change, we need to talk with clients in order to be sure their existing portfolios are still appropriate. This is accomplished in response to individual circumstances and not trying to time the markets. We like the quote from Warren Buffett on page one of the piece because to be a successful long term investor, especially in times of market volatility, patience is not only a prerequisite but also a requirement.
American Funds Investor Resource: “Keys to Prevailing Through Stock Market Declines”
“During periods of volatility in the stock market, you may have doubts about your long-term investment strategy. Here are five tips to help you avoid common pitfalls and stay on track toward achieving your financial goals.
1) Declines Have Been Common and Temporary Occurrences
2) Proper Perspective Can Help You Remain Calm
3) Don’t Try to Time the Market
4) American Funds Has Helped Investors Prevail Through Market Declines
5) Emotions Can Cloud Your Judgment…”