Market Volatility

Market Volatility

How Emotions May Impact Your Retirement

Since the Great Recession that lasted from late 2007 to early 2009, the market has seen a steady rise year-over-year. There have been a couple of bumps along the way, but overall, markets have recovered and consistently climbed to historic highs. From March of 2009 through July of 2019, the S&P 500 experienced over a 14% annualized return.2 Partaking in market growth during this time would make any investor happy. 

However, it is imperative to plan for a rollercoaster ride along the way, and that rollercoaster is called market volatility. As with anything in life, there are ebbs and flows, and the same holds true for the ups and downs of the market. If left to emotion, market volatility may cause some investors to panic and exit the market at low points or feel a sense of overconfidence and buy into the market at high points. This is a classic emotional trap. 
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