Ahhh… that confident feeling when you open your investment performance report and see an increase in the value of your account. You might feel pride remembering how much you saved or security in the thought of the potential increase over time. On the other side of the spectrum is the uncertainty when a performance report comes your way and you’ve experienced losses. You might feel panicked or confused in the moment trying to remember what you are invested in and unsure how your accounts are doing relative to the markets. You cannot deny how changes in the market impact emotions. Below are three things to keep in mind when we are experiencing fluctuation in the market.
Your investments fund your financial goals – Keep in mind that you save and invest to serve your goals, which typically last for years and decades not weeks and months.
Your investments at Capstone are designed according to your risk tolerance. At Capstone we use software called Riskalyze that uses a series of questions to gauge your risk tolerance using the concepts of behavioral finance. We then craft an efficient portfolio that aims to maximize potential returns and minimize potential risks.
Consider perspective. Markets go up about two-thirds of the time and go down about one-third of the time. However, it is uncommon for markets to not go up over longer time periods. Your account is built for the long run so consider trying to keep your focus on the long haul rather than the bumps along the road.