Managing Market Volatility
Conventional wisdom says that what goes up must come down. But even if you view market volatility as normal, it can be tough when your money is at stake. Although there’s no foolproof way to handle the swings, the following common-sense tips can help:
Don’t put all of your eggs in one basket — Diversifying your investment portfolio is essential, because asset classes often perform differently under varying conditions. Spreading them across stocks, bonds, and cash alternatives can help reduce your overall risk.
Focus on the forest, not the trees — Try not to become too concerned about day-to-day returns and keep your eyes on your long-term goals.
Don’t count your chickens before they hatch — As many investors learn the hard way, being overly optimistic about investing during the good times can be as detrimental as worrying too much during the bad. The right approach is to be realistic. Have a plan, stick with it, and strike a comfortable balance.
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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (CFS), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk, including possible loss of principal. Investment representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to members.