Stock markets have exhibited a large amount of volatility surrounding Russia’s invasion of Ukraine.
We encourage clients to stay invested. We do not want to time the market. Most people who try to time the market do not get it right and by trying to avoid the worst days, they may miss out on the best days.
In a previous article we share how we have planned for times like these by having stable areas in the portfolio to help fund income during periods of high volatility.
We have not seen these kinds of market swing since those felt in 2020 surrounding Covid uncertainty.
We encourage you to fight the urge to pull money out of stocks. When it comes to investing the biggest mistake you can make is selling stocks when they are down. Yet it’s this mistake that many investors make. These types of mistakes are the hardest to recover from. Thankfully most are able to persevere through the volatility and are greatly rewarded when markets rebound.
Fidelity put together an informative graphic illustrating the negative effective missing the best days in the market over a 40 year time period.
As we live through another period where the market is drawing down, remember there are sunnier days ahead and we have done our very best to plan for downturn‘s by having the more stable areas in your portfolio available to help fund distributions. This steadfast investment philosophy allows you to stay invested and benefit from the best days!