It’s hard to believe that it’s been 10 years since the Great Recession. Back then, we saw stocks fall; homes go underwater; and people’s personal savings accounts tumble. Understandably, investors were rattled. And although some had the conviction to stay in the markets, many others decided to get out and sit on the sidelines. And that was unfortunate because the ten years that followed saw the S&P 500 more than quadruple — those who weren’t invested missed out on the longest bull market.
So what’s the lesson here?
The key is to keep a long-term perspective and not to overreact. It helps to have proper expectations. For example, the markets naturally move up and down, so you can expect your investment account value to both gain and lose value. Also, our economy has recovered from market downturns in the past, so keep this in perspective when considering whether or not to invest during tough markets. Plus, if you are still years away from retirement, you may have time on your side. If anything, when the markets are down, it can be an opportunity to buy while stocks are on sale.
This information in the Financial Tips section 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.