The past days have been a reminder that market volatility is a natural part of investing. While sudden downturns can be unsettling, they are not uncommon and should be viewed in the broader context of long-term financial goals.
Perspective Matters
It’s easy to focus on short-term movements but consider this: several markets were at all-time highs just in the last couple weeks of trading. Markets fluctuate, but the overall trend historically moves higher over time. Recent turbulence does not erase the progress made in recent months, nor will periods of high volatility permanently doom your portfolio.
The Role of Diversification
Diversification exists not to chase the best possible returns, but to help protect against the worst outcomes. It does not promise positive results every day, week, or month, but history shows that patient investors who stay the course are rewarded. The probability of long-term gains remains overwhelmingly in your favor.
The Market Rewards the Patient
Global markets have a well-documented pattern: they reward patient investors and frustrate those who react emotionally. While downturns can be unnerving, they are part of the natural cycle of investing. Remember, risk and reward go hand in hand and there is no free lunch. Investors that panic and run from volatility are not entitled to the long-term returns markets have historically provided. Those returns are for the disciplined investor.
“This Time Is Different”—But Is It?
Market pullbacks always come with a fresh narrative: economic concerns, geopolitical events, interest rate worries—you name it. It often sounds like “Yeah, but this time is different.” However, history has shown that markets have overcome every crisis, every “unprecedented” event, and every downturn. As indicated by the chart below, the best course of action has always been to remain invested:
If you have questions or concerns, we are here to help. Staying focused on long-term goals, rather than short-term market noise, is the key to successful investing.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
10421 South Jordan Gateway, Suite 600
South Jordan, UT 84095
Disclosure: This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Fiduciary Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.
