Don’t Let Short-Term Volatility Guide You

Apr 2019

For investors with long-term objectives, we find it hard to construe short-term portfolio fluctuations as a meaningful risk within a long-term trajectory of stock-like average returns, unless one of these fluctuations causes an investor to abandon good, long-term investments in a temporary period of weak stock prices. Abandonment of a sound long-term investment program can make temporary declines permanent.