How do you invest in this volatile market

Market volatility, though unsettling, is a normal aspect of long-term investing. While these fluctuations can be stressful, experiencing market declines periodically is to be expected over the course of an investment career.

It’s challenging to remain calm when the market is declining, and you might wonder if you should take action. Although every investor’s situation is unique, there are some general steps everyone should consider during volatile periods.

When faced with market volatility:

• Avoid selling investments solely based on recent market dips. Selling during market downturns can turn temporary losses into permanent ones. Although staying invested can be emotionally taxing, it is often more beneficial for your portfolio in the long run. This doesn’t mean holding onto investments without consideration; instead, evaluate an investment’s future potential and its role in your portfolio, rather than reacting to market noise and fear.
• Adopt a long-term perspective. Markets naturally fluctuate, and significant declines are likely to occur multiple times throughout a long investing career. Historically, bear markets—defined as periods when the market falls by more than 20%—tend to be shorter compared to bull markets. Since accurately predicting market highs and lows is nearly impossible, all investors should aim to ignore short-term noise and remain focused on their long-term plans.