The S&P 500 got clobbered in 2018. It was down more than 6%.
The last quarter of 2018 was particularly bad. The S&P 500 dropped 13.97%.
The financial media and the securities industry saw a golden opportunity.
All they had to do was convince investors to panic and “flee to safety.”
In December alone, mutual funds invested in stocks and bonds lost a record $152 billion in assets.
Think of all those juicy commissions.
Fast forward to January, 2019.
As of January 18, 2019, the S&P 500 index was up a whopping 6.54%.
Investors overreacted to the December losses and missed out on the recovery in January.
No one knows how the market will perform for the balance of the year – or beyond.
But investors who stick to a disciplined plan, and don’t react to short-term volatility, are better positioned to achieve their financial goals.
“Doing nothing” is often the best decision or investors.
But don’t expect the financial media to give you that advice.