Whether it’s on the news or social media, chances are you’re exposed to concerning financial content every single day. For many investors, daily talk of inflation, the cost-of-living crisis and a possible recession can lead them to understandably feel anxious about the stock market.
However, staying positive in tough times is important, and when it comes to worrying about volatility on Wall Street, it’s crucial to not let your emotions drive your investment decisions. Resist the urge to act out of panic. And instead, focus on your long-term goals.
During moments of stock market doom and gloom, you may feel tempted to withdraw from your investments. But the markets sometimes rebound much faster than you expect. You could shortchange your financial future by pulling out of the market too soon.
Stay Positive in Tough Times & Staying Invested
When you look at a historical chart of the S&P 500 stock market index, there are some scary dips. Still, the stock market always found a way to continue its positive trend up and to the right. According to Investopedia, the average annualized return from 1957 through December 31, 2023, is 10.26%.
While market volatility can be nerve-racking, reacting emotionally and changing long-term investment strategies in response to short-term declines could prove more harmful than helpful. Adhering to a well-thought-out investment plan can help you remain calm during periods of short-term uncertainty.
Related: 5 Tips for Investing in an Election Year: Navigating Volatility
Understanding Resources Available to You
During times of economic uncertainty, it’s important to understand all retirement planning options at your disposal.
According to Scott Goldberg, president of Bankers Life®, “Pre-retirees accustomed to parking their funds in market-sensitive savings tools like 401(k) plans, may want to explore lesser-known offerings. It is important to understand how a diversified portfolio can help diminish the risk of financial loss in a volatile market and help with reaching long-term financial goals.”
Utilizing products like annuities or cash value life insurance can help you feel more confident about your financial future during uncertain times.
Want more? Check out our blog, Demystifying FINRA: What Investors Need to Know
We’re here for you
Staying positive in tough times is much easier if you have a financial plan and understand how it’s going to help you reach your goals. Reach out to a Bankers Life investment professional to get started with a complimentary review of your portfolio.
Bankers Life is a marketing brand of various subsidiaries of CNO Financial Group, Inc., including Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., Bankers Life and Casualty Company and select policies sold in New York by Bankers Conseco Life Insurance Company (BCLIC). BCLIC is authorized to sell insurance in New York. Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc. (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).
Securities and variable annuity products and services are offered by Bankers Life Securities, Inc. Member FINRA/SIPC, (dba BL Securities, Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services are offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA).
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