The S&P 500 officially entered a market correction this week, meaning it has dropped at least 10% from its all-time high in February. While that might sound alarming, corrections are a normal part of investing.
This downturn has been largely concentrated in tech stocks. The silver lining? Unlike many other recent market declines, bonds are actually doing their job as a buffer, providing a stabilizing effect in portfolios.
As of today (Friday), we’re seeing a bit of a rebound. Does that mean we’ve hit the market bottom? No one can say for sure—we only recognize the bottom in hindsight. That’s why we don’t try to time the market. Instead, we stay focused on the same proven strategies that keep you on track, no matter what the headlines say:
➞ Stick to the plan.
➞ Time in the market beats timing the market.
➞ If you’re investing cash as part of your plan, enjoy the good deals.
➞ If you’re withdrawing from your portfolio, remember: we built in a cushion so you don’t have to sell in a downturn.
These are times that separate the winning portfolios from the losers. We’re here for the long-term compounding.
Keep calm and invest on.
Kaylin Dillon, CFP®
