With the continued extreme volatility and recent losses in the stock markets, you may be tempted to reduce your portfolio’s equity holdings. However, as this article points out, Selling Burns 401k Investors Who Dumped Stocks, trying to time the market did not work out well for investors the last time we saw significant downward movements in the equity markets.
It’s important to position your portfolio at an overall risk level that you can be comfortable with, during good times and bad, and that will help enable you to achieve your long term goals. Equity investments have provided significant gains over the long run, however these gains come with the risk of increased volatility. These kinds of fluctuations in the market are to be expected, but if you don’t give into the temptation to try to time the market, you have a better chance of achieving your goals over the long run.
If you have any investment related questions, please feel free to contact Raffa Wealth Management directly.