What if the Stock Market Falls? How to Stay Strong During Storms

How high can the stock market go?

The Dow Jones Industrial Average is breaking all kind of records. 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 






Author:
Lindsay Goldwert is Senior Editor at Stash.



Disclaimers
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.

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.