How high can the stock market go?
The Dow Jones Industrial Average is breaking all kind of records, closing above 21,000 back in March. Can it last? Of course not. Historically, what comes up, must come down — at least for a while.
It’s just the way the market works. No one wants a return to the market lows that marked the Great Recession of 2007-2009. But being a smart investor means being prepared and educated to the possibilities.
We’ve got five words for you:
Stay strong and keep diversified.
A mix of ETFs to balance out your risk when the market starts to wobble is your best investment ally.
Take the long view
Think of the market like the wide open sea. At close glance, you see the white water and the choppy waves. But if you pull back, it’s a much calmer view. Sailors don’t let a few riptides keep them from getting to shore or jump ship when clouds darken the skies. They stay the course.
The past has shown us that winds will calm and the sun will return. Stay true to your school (of investing). Volatility is not the same as risk.
Remember, Stash is with you every step of the way. We believe in taking the long view when it comes to investing.
You’re the captain of your portfolio. Consider us your First Mate.
Keep reading: Investment Risk and How to Manage It
Lindsay Goldwert is Senior Editor at Stash.
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The Dow Jones Industrial Average (DJI), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities. DOW JONES is a registered trademark of Dow Jones Trademark Holdings LLC and has been licensed for use by S&P Dow Jones Indices LLC, a division of S&P Global. Past performance of an index is not an indication or guarantee of future results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments based on the index. For more information on DJI, please visit www.spdji.com. Market data by Xignite.