- The U.S. economy is strong
- Rising interest rates can affect markets
- Stay the course and turn on Auto-Stash
Will the markets go up and down? YES.
One of the questions I get asked when the market goes down is, “Should I sell?”
My answer, which I’ve formed over the past 20 years, is not necessarily.
Selling is often the wrong thing to do. We encourage you to follow the Stash Way.
Think of an angry three-year-old child. He or she eventually gets over it. Markets do too. I have seen this movie play out time and time again. (I also have three kids!)
History shows us
Over the past 15 years, there have been turbulent periods in the market. The chart below reflects how markets have fluctuated over that time.
You’ll see gains and declines through the dot-com bust, 9/11, the Great Recession, wars in Iraq and Afghanistan, and four separate presidential administrations. You’ll see how staying the course is oftentimes the way to go.
The key to “investing” through market volatility, is to invest small amounts on a regular basis. Auto-Stash allows you to do just that. If you have it on, keep it on. If you’ve never tried it, now is the time. It’s an automated way to buy investments while they’re going up and when they’re going down. (This is known as dollar-cost averaging, and it’s really important.)
Long-term investors (that’s you) shouldn’t be concerned with timing the market. I’ve said this before and I’ll keep saying it—no one can predict exactly what will happen tomorrow or next week.
Listen to your Coach
If you are really concerned about the risk to your portfolio, check out Stash Coach to learn how to get more diversified and buy more of your mix. You can also consider Park My Cash and Uncle Sam, both hold only U.S. government bonds and no stocks.
Having investments like these in your portfolio can help smooth out the ride over time.
Stash is your investment adviser, and our goal is to look out for you and your interests by helping you continue to save and invest for your future. Although we can’t predict the future, try not to sweat the ups and downs.
It’s all about the time you are in the market that counts, not how you time it.
CEO – Stash
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*Disclaimer: This graph is not a prediction or projection of performance of an investment or investment strategy. Source: Macrotrends (2018