The best response to market volatility is long-term, disciplined investing. Read more in this article about how the markets have behaved in the past, and how the investor responses affected their overall returns.
The importance of maintaining a long-term, disciplined approach to investing cannot be overstated. Our well-constructed portfolios are designed to help clients navigate times like these and to continue to meet their long-term goals. This article highlights how markets have rewarded discipline over time.
The market has rebounded off the lows experienced last week. Nonetheless, we expect elevated market volatility as coronavirus developments continue to evolve. We are well prepared. We have well-constructed portfolios designed to help our clients navigate the current market environment and continue to meet their long-term financial goals.
In times like these, it can be difficult to look through the short-term noise and not let emotions dictate investment decisions. The following charts prove the importance of staying disciplined and focused on the long-term.
The Markets Have Rewarded Discipline.
A disciplined investor looks beyond the concerns of today, and focuses their energy on the long-term growth potential of the markets. Below is a graph showing how the growth of a dollar has ebbed and flowed throughout major events and market volatility.
Stock Market Returns After Sell-offs.
Reacting Can Hurt Performance.
All too often investors allow emotions to dictate investment decisions and sell at the exact wrong time, trying to time the market. Unfortunately the market is impossible to time and these investors ultimately miss out on the inevitable subsequent stock rebound. Missing those strong positive market moves is detrimental to long-term returns.
We are maintaining discipline with respect to portfolio construction and rebalancing. We continue to closely monitor the current situation and believe the impact of the coronavirus will ultimately be transitory in the grand scheme of things. Our portfolios are constructed to navigate times like these and to continue to meet the long-term financial goals of our clients.
If you have any questions or concerns, please reach out to your advisor, or you can find more information about how we invest on our website.
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Mission Wealth is a Registered Investment Adviser. This commentary reflects the personal opinions, viewpoints, and analyses of the Mission Wealth employees providing such comments. It should not be regarded as a description of advisory services provided by Mission Wealth or performance returns of any Mission Wealth client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Mission Wealth manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
