Share  |  Print
Money Minute
Quick Tips
What to Do When Markets Are Volatile
Money Minute
When investors become fearful, there can be significant volatility in the market.
 

It seems like again, we find ourselves in a skittish stock market driven by fear. And although it is tempting pull your money out given all the short-term volatility, remember that our economy has a history* of figuring things out over the long-term.

We’ve seen this before. The last big market scare was during the Great Recession in 2009. At that time, news about the economic downturn was all over newspapers throughout the world. Years later, we saw volatility when Greece came close to defaulting on its debt obligations. In each case, we eventually bounced back.

So the important takeaway is not to panic. Looking back, if you were to have pulled your money out of the markets during these volatile periods, you also could have missed out on the market recovery that followed.

Remember, the stock market is best suited for those with long-term goals. And if your goals haven’t changed over the past week, then it doesn’t make sense to completely change your investment strategy over what is likely to be a blip in the stock market’s long history. So for most long-term investors, I suggest taking a deep breath. Instead of the familiar saying, “Don’t just stand there — do something”; I like Jack Bogle’s take from Vanguard: “Don’t do something — just stand there”.





*Past performance does not guarantee future results.

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.

 
Get to Know Ariel
No-load mutual funds for investment accounts, IRAs, 401(K) plans/rollovers, or college savings programs for individual investors
Learn more about Ariel Investments from the people who know it best
Request a kit to learn everything you need to know to invest with Ariel
Start investing with Ariel today
 
 
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.

Check the background of this firm on FINRA's BrokerCheck
Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation