Full Report Here: Staying the Course — Even in a Volatile Market
Markets have been choppy lately — and with all the headlines and uncertainty, it’s totally understandable to feel uneasy. That said, we’ve seen this kind of volatility before, and it’s important to keep perspective and stay focused on the bigger picture.
Here are a few reminders that help put things in context:
1. Markets Bounce Back
Even after big drops, the market has a strong track record of recovering. We’ve seen it time and again — including after tough stretches like 2018 — that staying the course can pay off.
source: 5 charts that put market volatility in perspective
2. Big Pullbacks Often Lead to Big Recoveries
When the market drops 15% or more, the average return over the next year has historically been over 50%. Missing those rebounds can be more damaging than enduring the downturn itself.
source: 5 charts that put market volatility in perspective
3. Downturns Are Short, Growth Periods Are Long
Bear markets usually last about a year, but bull markets (the good times) often stretch 5+ years. Being invested through the rough spots is how long-term gains are made.
4. Bonds Help Smooth the Ride
Bonds are playing an important role in portfolios this year — while stocks have dropped, many bond investments are holding steady or even posting gains. This is why diversification matters.
5. Staying Invested Works
Trying to time the market is incredibly difficult — and usually leads to missed opportunities. Sticking with your long-term strategy helps capture the eventual upside.
The views stated in this letter are not necessarily the opinion of Cetera Advisors LLC. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. A diversified portfolio does not assure a profit or protect against loss in a declining market.