It is natural to see headlines about world markets falling and to worry about your portfolio.
While it is never fun to see your portfolio take a hit, losses are a normal part of investing. Over the last near eight years, our portfolios have fallen in value a significant portion of the time.
A key thing to remember is that you are investing for the long term. We build our portfolios to reflect this. If we had to build a portfolio for you today, it would be very similar to what we would have built previously.
We do realize being a long-term investor is easier said than done. The long-term can feel like an eternity when things do not look so rosey.
In our years of serving clients, we have dealt with our fair share of downturns. Rather than trying to predict the downturns, we plan for them.
Trying to avoid market downturns means sitting in cash. This means you will most likely miss out on returns in the long run.
Try not to worry about avoiding temporary downturns, as difficult as it can be. Instead, focus on the things we can control to capture all the returns the markets offer in the good times.
You may still be nervous about the markets. In this case, you may be better off reviewing your financial planning than your portfolio. One of the key areas of planning is the level of risk which is suitable for you.