The U.S. stock market (represented by the Russell 3000 index) has dropped around 10 percent in the past month, as investors have been rattled by frequent changes in federal government policies and uncertainty as to how those changes will impact the U.S. economy. As always, this market volatility has sparked some concern and anxiety among investors about what will happen next and whether they are adequately prepared to handle a continued downturn, if that is what the market delivers. In light of these concerns, Dimensional Fund Advisors recently published an article entitled, “Investing Can Be a Roller Coaster: Three Tips for Riding Out the Ups and Downs.” The article reminds investors:
With respect to Dimensional’s third tip, note that international and emerging market stocks have held their ground (remaining approximately flat) over the past month, while bond funds have ticked upward. If you need to withdraw funds from your investment portfolio, we will typically sell whatever segment of your portfolio has performed well recently. We do not need every asset class in the global stock market to be soaring all of the time. While U.S. stocks are down, we can use international stocks or bonds to meet your spending needs.
If you have concerns about this recent market dip, please do not hesitate to call or email us anytime.
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