Investing in a Volatile Market
These periods of market volatility could make even the most experienced investors nervous. In these times the best thing to generally do is play the long game and take emotions out of your investments, especially if you don’t need these funds anytime soon.
It appears that we are in a Bear Market, based on several metrics. Historically, Bear markets have a shorter duration than Bull Markets do. If you are unfamiliar with a Bear Market, it is a period when an individual stock or an index such as the Dow Jones or the S&P 500 has fallen 20% or more from a recent high.
This is the time to review your portfolio, possibly re-assess your risk capacity, and diversify your stocks. A good mindset is to view the market and the prices as being offered at a discount, so now is possibly a good time to invest new capital into undervalued investments. While this current market looks gloomy, it can be viewed as another opportunity to purchase investments for the long-term investor.
* Any opinions are those of the Lamchick Epstein Wealth Management Group and not necessarily those of RJA or Raymond James. 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. There is no assurance any of the trends mentioned will continue or forecasts will occur. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stocks of companies maintained and reviewed by the editors of the Wall Street Journal. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Inclusion of these indexes is for illustrative purposes only. Past performance does not guarantee future results.
