Design a Portfolio to Weather the Storm

Dec 18, 2015
Author: Scott Hanson

Market Gyrations - How to Invest for a Successful Retirement

As I cover throughout my "Don’t Let Market Gyrations Wreck Your Retirement" webinar, which is available for free simply by clicking on the link above, fluctuations in the markets are not at all unusual. But those swings make it all the more impossible to “time” the markets and jump in or out as you chase returns (or try to avoid losses).

So, how can you set about building a portfolio designed to weather the storm, while setting yourself up for long-term investment and retirement success?

Focus on the long term.

I always tell investors to try not to worry about the next 20 days, but to instead focus on the next 20 years. Timing the market is virtually impossible. Slow and steady wins the race. Yes, the market will fluctuate, but exhaustive studies have shown that investors who stay in the market and weather downturns realize greater returns than investors who jump in and jump out.  

Market cycles will occur, but nobody can consistently predict them.

This is something I often talk about whenever I speak at a workshop or am interviewed by the media. Market cycles are a natural part of history—and of economics—and will occur. Studies, like those presented in my "Don’t Let Market Gyrations Wreck Your Retirement" webinar, show that often your best approach to retirement preparation is to “stay the course” and avoid the pitfalls of behavioral finance. Simply, don’t let fear or greed dictate your investment philosophy, and don’t jump in or jump out of the markets based on the rumor mill (or on the advice of television talking heads).  

Build a portfolio to weather the storm.

Since 1945, the stock market has fallen between 5-to-10% a whopping 59 times. Over that same period, the market has declined 10-to-20% a full 21 times. And on 12 separate occasions, the market has fallen by more than 20%.

What does this mean?

Markets go through cycles. And since 1945, each time there’s been a downturn, no matter how severe, the stock market has not only recovered, but once it’s recovered, each and every time it’s actually gone on to reach a level that was higher than before the downturn.

This means that the people who stayed the course, and took the “long view” to investing, usually came out further ahead than those who jumped in or jumped out of the market.

But how can you protect yourself?

Watch "Don’t Let Market Gyrations Wreck Your Retirement"  webinar to learn what you can do to allocate your portfolio in a way that protects you and your family.  An investment of just 15 minutes could have a tremendous impact on your financial future.

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