If you pay any attention to the financial media, you’ve certainly been subject to panicked headlines about market volatility and what it means for your investments. At times like these, we think it’s important to look at the data and provide context for these market fluctuations.
We think the one-minute video below sums it up well, but we highly recommend checking out this article from Dimensional Fund Advisors for more in-depth analysis.
Conclusion: “While market volatility can be nerve-racking for investors, reacting emotionally and changing long-term investment strategies in response to short-term declines could prove more harmful than helpful. By adhering to a well-thoughtout investment plan, ideally agreed upon in advance of periods of volatility, investors may be better able to remain calm during periods of short-term uncertainty.”