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Money Minute
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Market Volatility
Money Minute
What does market volatility mean for investors?

Recently the stock market reminded us that it’s not always smooth sailing. And for some investors who may not have experienced these fluctuations in the past, it can be scary. That said, it helps to have some perspective.

First of all, it’s important to remember that we’ve had an unusually long period of growth in the market. Under normal conditions, the market typically has more ups and downs.

And although the drop early in February 2018 was significant, when you look at it in terms of percentages, the Dow’s one-day decline of over -4% didn’t even rank in the top 20 worst days for the market. For comparison, on Black Monday in 1987, the market fell over -20% in a single day.

So what does this mean for investors? For me, I’m staying invested and continuing with my regular 401k contributions. I still have many years before retirement, so I have time to ride out the volatility. In fact, when the market goes down, I see it as an opportunity to buy more shares while they’re on sale. Remember, the goal is to buy low and sell high — not the other way around.

Past performance of any security, or of the stock market in general, does not guarantee future results. Investing in equity stocks is risky and subject to the volatility of the markets.

Khoa Ho candidly discusses his viewpoints of market conditions and historic overview. The information contained herein is not guaranteed as to its accuracy or completeness. It should not be considered investment advice. The opinions expressed are current as of February 2018 but are subject to change. The information provided herein does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular investment. It also is not meant to be individualized retirement planning or investment advice. Consult your financial professional for advice suited specifically to your individual needs.

The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.

Past performance does not guarantee future results. © Ariel Investments, LLC. This website and all of its content is for informational and educational purposes only and should not be considered to be investment advice or a recommendation to buy or sell any particular security. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC. Use of this website is subject to our Terms & Conditions. The Ariel mutual funds referred to in this site may be offered only to persons in the United States. This web site should not be considered a solicitation or offering of any investment products, funds or services to ineligible investors, investors for whom such products, funds or services are not suitable, or investors outside the United States.

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