Panic selling is not an investment strategy. Repeat: panic selling is not an investment strategy.
Investors who pull the emergency brake and bail out during a market decline almost always lock in a loss on their investments. And if they stay out of the markets, chances are good they’re going to miss the recovery, which further compounds any losses. Selling at a low – and then buying back when prices are higher – has never been a winning financial strategy.
While it is totally natural to be concerned about portfolio performance during declining markets, we can learn a lot about how we should (and shouldn’t) react by looking at history and the various bear market declines and recoveries over the past 60 years. What does each downturn have in common? A robust recovery.
While it can be painful to ride out the storm, historically the most pessimistic periods often make for good long-term buying opportunities. Of course, past performance is no guarantee of future results, but we encourage you to carefully consider all options before taking any action with your investments. Contact our office for an in-person meeting or phone call – we always want to be sure you feel confident about your position today AND in the future. We’re here for you.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.