In Volatile Markets, Patience is Your Friend

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The financial markets have been volatile since the beginning of the year. After three great years, the stock market has been down significantly in 2022. Interest rates have risen causing bond prices to fall too. That’s a double whammy we haven’t seen too often.

In the face of this bad news, what, if anything, should you do to adjust your long-term portfolio management strategy? If you developed a sound strategy in the first place, and built a solid portfolio to implement it, your best bet is to do nothing. Here’s why.

The stock market

There are always grim headlines about turmoil in the financial markets, threats to world peace, or disasters of one kind or another. As you can see below, the stock market has historically risen over time despite the headlines.