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INVESTING COMES WITH UPS AND DOWNS
Are you prepared to handle market volatility?
MARKET VOLATILITY (noun): A significant difference in returns from the markets over a short period of time – basically the ups and downs.
HISTORY HAS REPEATED ITSELF
While some periods of decline have been severe, the market, overall, has grown with time.
Staying invested, even during downturns and difficult markets is important.
The markets fall 5% or more about 3 times per year1 on average lasting 43 days 2,3
A ROLLER COASTER OF EMOTIONS
Emotions can lead to near-sighted actions that derail long-term strategies
INVESTORS TEND TO BUY HIGH / SELL LOW
[Graphic of a bar graph displaying the S&P 500 as the highest bar, Bloomberg Barclays U.S. Aggregate Bonds half as high as S&P 500, Average Equity Investor slightly less than half as high as S&P 500, and Inflation a small fraction of S&P 500]
[Graphic of a dashed line drawn from the S&P 500 bar to the Average Equity Investor bar saying 1.74% difference4]
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Your risk tolerance can and likely will change over time
TAKE ON RISK BASED ON YOUR TIME HORIZON
Don’t be over-confident or take on more risk than you can afford.
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DON’T PUT ALL YOUR EGGS IN ONE BASKET
No one can predict which asset class will perform best in a given year.
Manage risk by investing in a mix of solutions like stocks, bonds and cash.
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WORKING WITH A FINANCIAL PROFESSIONAL CAN HELP
Your relationship in creating a plan to meet your goals.
They leverage tested strategies during all kinds of markets.
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Work with your financial professional to review your overall financial strategy
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1 Assumes 50% recovery of lost value
2 Measures market high to market low
3 RIMES, Standard & Poor’s 1951-2020. Source: American Funds
4 Comparing Annualized Returns of an Index vs. Investor Experience (12/31/98 – 12/31/18). Source of chart data: DALBAR, Inc., Dalbar’s 25th Annual Quantitative Analysis of Investor Behavior. Dalbar ©2019. This study is for illustrative purposes only. Average equity investor performance results are calculated using data supplied by the Investment Company Institute. Past performance does not guarantee future results. The S&P 500® Index is an unmanaged index and is a broad-based measure of domestic stock market performance that includes the reinvestment of dividends. Bloomberg Barclays Aggregate Bond Index is an unmanaged index of bonds generally considered representative of the bond market. Theses Indices cannot be purchased directly by investors. The Dow Jones Industrial Average is an unmanaged, price-weighted average of 30 actively traded industrial and service-oriented blue chip stocks. Past results are not predictive of results in future periods.
Advisory and financial planning solutions are only offered by investment adviser representatives.
This document is intended for general public use and is for educational purposes only. By providing this content, Park Avenue Securities LLC is not undertaking to provide any recommendations or investment advice regarding any specific account type, service, investment strategy or product to any specific individual or situation, or to otherwise act in any fiduciary or other capacity. Please contact a financial professional for guidance and information that is specific to your individual situation.
To learn more about Park Avenue Securities, visit www.parkavenuesecurities.com. Securities products and advisory services offered through Park Avenue Securities LLC, a registered broker-dealer and registered investment adviser. Park Avenue Securities is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS and Guardian are located at 10 Hudson Yards, New York, NY 10001. Member FINRA, SIPC. Diversification does not guarantee profit or protect against market loss. Past performance is no guarantee of future results.
PAS017839 (07/21) 2021-124187 (Exp. 07/23)