Investors often wonder if they should sell their investments when the market hits a rough patch to avoid losses—but patience can be a virtue in volatile markets.
History of Market Ups and Downs
No matter how many times you hear that market sell-offs are “normal,” the experience can be unnerving. This may be especially true today after many investors became used to nearly a decade of remarkable gains and low volatility.
We find that long-term goals benefit from a long-term view of the market by helping you plan for inevitable ups and downs. (Stay up-to-date on our market views with the latest investment outlook.)
What Is Volatility?
Simply put, volatility refers to the frequency and magnitude of up and down swings in performance. There are many ways to measure it, but here we look at times when the stock market rose or fell more than two percent.
Taking a look back, you see that the market’s relative calm from 2012- 2017 was unusual.