is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.” – Martin Luther King Jr.
Dr. King’s words hold true, whether in the context of his social justice efforts or an investment portfolio. While investors were briefly tested during the 30% dip in 2020, it has been a while since we have seen the massive, prolonged losses of 2008. As the market continues to tick higher, many investors’ anxiety meters are at an all-time high as well. We often hear concern about a market downturn when things seem to be too good to be true, and although we cannot predict when a downturn will take place, we can certainly prepare our portfolios.
Most things that go up must come down; however, age is an exception. An individual in their 30’s would not be as affected by a downturn as one in their 70’s due to the time and ability to recover after the fact. While it may not have detrimental effects on your portfolio, you still need to have a plan.
Many investors that fall into this category may still have nightmares about the market in 2008. Studies have shown us that this generation of investors are much more timid with their portfolios and greatly fear another significant market down. While a market downturn could be detrimental to some, having a well sought out plan could help provide protection and mitigate risk.
So, where does your plan stand in the face of challenge and adversity? Can your portfolio withstand whatever the market has in store for us in the near future? Whatever point you’re at, know that it’s important to keep moving – to keep investing – when challenges come our way. To quote Dr. King again, “If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.”
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This blog was originally published on MySaline.com