Dimensional Fund Advisors (DFA), which is a core fund family in many of the investment portfolios we implement for our clients, recently published an article that addresses the stock market volatility and best practices for “weathering the storm.” This article highlights many of the fundamentals that we discuss and have consistently practiced. We are sharing the article below in hopes that you may find the research reassuring as we look to help you achieve a positive long-term investment experience.
Read the full article here:
Three Crucial Lessons for Weathering the Stock Market’s Storm
Key Takeaways:
- Reacting to down markets is a good way to derail progress made toward reaching your financial goals.
- Over the past century, US stocks have averaged positive returns over one-year, three-year, and five-year periods following a steep decline.
- One of the best ways to avoid succumbing to emotion at the expense of your portfolio is to partner with an advisor and make a plan.
We plan to continue to focus on the things we can control which are our asset allocation, the rate at which we save, and the rate at which we spend. Having a plan in place helps us to deal with all of the variables that are outside of our control (such as inflation, market volatility and geo-political issues). Continuing to have regular meetings will allow us to monitor your specific situation and tailor our recommendations based on your individual goals and needs. Let us know if you have any questions or if you’d like to schedule our next review.