3 ways to stay on track during market swings


Woman holding coffee and looking concerned at her mobile phone.

Key Points

  • Market volatility is a natural and ongoing characteristic of investment markets.
  • Historically, markets have bounced back after losing value, and it’s likely this will happen again when dips occur in the future.
  • The best defense against short-term market volatility is to work with your Ameriprise advisor, maintain your asset allocation strategy and focus on your investment objectives.

It’s normal to wonder if you should react to short-term market volatility. Here’s a checklist to help keep you on track.

  • Talk with your advisor if you have concerns. Your advisor is your ally to help you maintain a long-term, diversified investment portfolio, focus on your goals and put price fluctuations into perspective. This can help you stay on track during market swings.
  • Make decisions based on your goals, asset allocation strategy and risk tolerance, not emotions. Remember that, historically, markets have bounced back after losing value, and it’s likely this will happen again when dips occur in the future. Your best defense against short-term market swings is to adhere to an asset allocation strategy that’s appropriate for your financial goals and risk tolerance. Your advisor can help you rebalance your portfolio and reassess your risk tolerance when needed. 
  • Stick with your personalized investment strategy. To help preserve the value of your portfolio and enhance its growth potential over time, it’s important to remain appropriately invested throughout all market cycles. This is a key step in growing wealth over time because sidelining assets when markets are rough can mean missing out when values move up again.

 

Your advisor is available to talk

During short-term market volatility, your advisor is an experienced resource to help you stay on track. Together, you can review your financial goals, asset allocation strategy and risk tolerance, and discuss how to navigate the normal — and even expected — volatility that happens in the securities markets.

For timely market commentary and analysis, you can also visit your advisor’s website and the Market Volatility Resources on ameriprise.com.