While stock market volatility is an unavoidable fact of life, there’s no denying that these periods of instability can spark a sense of uneasiness among investors and a general wariness about one’s financial future. You may frequently find yourself asking; “Should I pull my money out of the stock market?” While it may seem tempting at times, divesting your assets is often not a beneficial long-term strategy.
“After years of market complacency, it can be easy to forget that volatility is normal,” says David B. Smith, CFA, Chief Investment Officer of Rockland Trust’s Investment Management Group. “While volatility can bring discomfort, it’s a necessary and unavoidable part of the investment process. A sound investment strategy can help you navigate the market’s highs and lows with confidence.”
Predicting market activity with consistent accuracy can be next to impossible. Many factors play into market fluctuations, such as macroeconomic, political, and government policies, just to name a few. Rather than constantly pivoting to account for market fluctuations, talk to your advisor about maintaining a steady approach to investing. Portfolio diversification and downside protection strategies will help you meet your long-term goals and objectives without wavering in the face of short-term market fluctuations.
With no way to avoid market volatility completely, we asked our investment experts for three reasons why you should consider staying the course.
“Investing in equities will inevitably result in times when one’s portfolio has negative returns. A hallmark of a successful downside protection strategy is how quickly it recovers its value,” says Doug Butler, SVP and Research Director of Rockland Trust's Investment Management Group. “Whether you’re nearing retirement age or just entering the workforce, the Investment Management Group at Rockland Trust can help you develop an investment strategy to weather market volatility and reach your short and long-term financial goals.”
If you are rethinking your investment strategy, contact our experts in investment management, who are happy to help walk you through the options that best meet your financial needs and goals.
Get the latest financial tips and advice by signing up to receive our emails.
Rockland Trust Online Banking gives you a variety of services that help you use and manage your accounts, whenever and wherever you want.
Rockland Trust makes it easy to manage all of your accounts with our simple online portals.
Rockland Trust gives you a variety of services that help you use and manage your accounts, whenever and wherever you want.