Surviving a Market Sell Off
NEVER TRY TO TIME THE MARKET! There’s an old saying in the financial services industry, “When there’s a fire sale in the stock market, nobody buys.” The difficulty we face during a market sell off is the same difficulty we face when the market takes off, fear of missing out, a.k.a FOMO. It seems too late to sell but too early to buy.
Investing in the market through dollar cost averaging or periodic investing over time lowers your risk of making badly timed purchases by diversifying your investments. When stocks are down or “on sale”, you’ll be buying more shares at lower prices.
Bottom line…. Don’t have a knee-jerk reaction, ask yourself if you truly believe in the companies you’ve invested in and whether or not you’re willing to wait out the slump.
Remember, its time in the market, not timing the market.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
Any opinions are those of Frank Calderone and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.
Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels.
