With all the negative focus on market volatility, it’s easy to forget about the opportunities.
Recession fears, corporate scandal, war, a housing crisis, or other significant events can make it difficult for you to remain confident about participating in the many swings of the market, and focusing on long-term opportunities. Keep in mind that “volatility” describes both the downswings and the inevitable upswings that the market will experience. It’s these upswings, in fact, that play a key role in helping you grow your future retirement income.
Market cycles are completely normal, and are commonly categorized as “bear markets” – a prolonged period when the stock market declines by 20% or more – and “bull markets” – a period of positive market returns usually lasting a year or more.
It’s understandable that your fears are causing you to question decisions involving your retirement savings in a bear market as pronounced as the one we’re experiencing. But what will happen if you bail out of the market after a significant decline and move your money to a “safe” interest-bearing investment? History shows that after every bear market is a charging bull market – which will typically start with a bang and last for an average of over four years.* By not positioning your retirement assets to take advantage of this potential turn, you can effectively “lock in” your bear market losses!
Don’t let today’s bear make you lose sight of future opportunities. Let’s determine how to best position your retirement assets to help capture the upside potential of market volatility, while potentially minimizing the downside risk.
