While past performance does not guarantee future results, you may not want to be on the outside looking in over the next several months.
When you do invest, look for quality investments that fit your specific situation. Also, diversify your portfolio with items such as stocks, bonds and certificates of deposit. Although diversification by itself can’t guarantee a profit or protect against a loss, it can help you reduce the effects of volatility on your holdings.
Finally, keep a long-term perspective. If you can create an investment strategy that’s based on your individual needs and risk tolerance, you can look beyond the events of today toward the goals of tomorrow.
“Staying The Course” Can Pay Off For Investors
While stock prices were going through their dizzying descent, some people gave up and abandoned the markets. Others chose to “stay the course” and continued investing in the market.
In fact, from March until early August, the stock market, as measured by the S & P 500, rose about 45 percent. In the past, the market has often risen in the period after a recession ends, and right now many economists think the recession is ending, according to a Bloomberg survey. Investors who abandoned the markets could be missing any recovery.
Still, past performance can’t guarantee future results, and there are always risks to investing. But if you stay invested, think long-term and focus on quality investments, you can help reduce your risk level.
If appropriate for your situation, it may make sense to stay the course by investing in all types of markets. Your persistence may well reward you.
Contact Wendell at Edward Jones www.edwardjones.com. |
