Staying Invested During a Recession
During a recession or a market downturn like the situation with COVID-19, you may be tempted to sell your investments and get out of the market. This video explains why this may not be a good idea. Watch for details!
As the market continues to fluctuate and worry extends beyond your investments, let’s address concerns about long-term investing.
While most investors understand that markets go up and down, there is a tendency to feel the fear and worry in a decline more than the certainty and excitement of an upturn. Constant market alerts, the 24-hour news cycle and breaking headlines fuel the fear and worry. These cause investors to think they should leave the market when it’s down and get back in when it goes up. However, without a crystal ball do you know when the market will go up? According to a University of Michigan study, 96% of market gains occurred in .9% of trading days from 1963 to 2004. That’s almost all of the market gains in only 135 days of the market!