Staying invested during market volatility can pay off over time

The markets go through cycles, it’s never a straight line. It’s time in the market not market timing.

It’s normal for investors to consider pulling their money out of the stock market during a major market sell off or melt down. But doing so would be short-term thinking. Staying in the market for the long term helps investors participate in future gains and keep them on target for their goals. Missing out on market upswings can have a devastating impact on long-term earnings and returns.

Staying Invested Matters
Six of the 10 best days occurred within two weeks of the 10 worst days.*

*On August 24, 2015, the Dow Jones Industrial Average closed down 588 points. On August 26, it closed up 609 points.

Know

• Fear is not an investment strategy—emotion-based selling can cause you to miss the market rebound.
• Think long term—U.S. stocks can be a source of growth for investors who stay in the market.
• Low markets can be an opportunity to buy stocks at bargain prices.

Do

• Adopt a disciplined long-term strategy and stick with it.
• Choose a level of risk that lets you feel comfortable and matches your time horizon.
• Keep up your regular investments, especially into retirement plans.

Be smart. When investing, smart investors create a long-term, diversified plan to help themselves ride out the market’s ups and downs.

Source: Chase