[This article is a recent email from our sister company: Gem Young Wealth. We thought our insurance clients would find it interesting as well.]
We know it’s easy to become caught up in the current market roller coaster. But, instead of looking at the “right now”, consider the big picture.
Investors tend to see short-term volatility as the enemy. Volatility may lead many investors to move money out of the market and “sit on the sidelines” until things “calm down.” Although this approach may appear to solve one problem, it creates several others:
#1) When do you get back in? You must make two correct decisions back-to-back; when to get out and when to get back in.
#2) By going to the sidelines you may be missing a potential rebound. This is not historically unprecedented; see chart below.
#3) By going to the sidelines you could be not only missing a potential rebound, but all the potential growth on that money going forward.
We believe the wiser course of action is to review your plan with your advisor and from there, decide if any action is indeed necessary. This placates the natural desire to “do something”, but helps keep emotions in check.
We are here to answer any questions or concerns you may have. Feel free to call or email, our door is always open.
A Registered Broker/Dealer Member FlNRA, SIPC
Gem-Young is Western PA and the Mahoning Valley’s premier insurance and financial planning firm with offices located in Canfield and East Liverpool, Ohio. We are a locally owned, family-run business offering home and auto insurance, business insurance, life and health insurance, and a true wealth advisory asset management service. We believe in making a difference in our clients' lives. www.gemyoung.com