The Value of Staying Invested
In an effort to keep you informed as it relates to your investments and achieving your goals, we wanted to share the following information with you, on the value of staying invested.
Volatility is a constant in the market, how investors react to it, however, will determine if they will eventually meet their investment goals.
When financial markets get rocky, you may wonder why you should stay invested – Why not get out while things are bad, and just get back in when they’re better?
But market downturns and recoveries often seem to arrive out of nowhere. Even if you time your sell decision perfectly, if you’re a long-term investor, you’ll need to buy back into the market eventually. And the best time is never clear.
©Copyright 2019 1832 Asset Management L.P. All rights reserved. Reprinted with permission. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.
As seen above, despite continued investor concerns, markets continue to fluctuate. Therefore, investors who sell during periods of market stress often feel the pain of loss twice: first, when they lock in their losses, and second, when they miss out in the eventual recovery – and that’s no way to achieve your long-term goals!
Let time work for you, not against you – stay invested.
When the market becomes volatile, stay put. Keep focused on long-term goals rather than short-term news. It’s time in the market, not timing the market, that counts.
The below illustration highlights the importance of staying invested, despite market movement:
©Copyright 2019 1832 Asset Management L.P. All rights reserved. Reprinted with permission. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.
EdgePoint, one of our partners, has created a video to remind investors that their first decade of existence may not have always been a smooth ride, but that it paid to be patient during the tough times.
We encourage you to take a moment to review the following thought-provoking video:
