KEEP CALM AND STAY INVESTED
3 GUIDELINES TO KEEP IN MIND IN
VOLATILE MARKETSWe are faced with headlines every day that inevitably cause us to think about bailingon investments. Whether it’s rising interest rates, the collapse of cryptocurrencies, or
geopolitical tensions, the news can be very distracting.
On days where headlines are alarming and investors like you are wondering what’s
happening to their savings, it’s more crucial than ever to focus on the bigger picture. AtRussell Investments, we believe that investors can avoid missteps that can lead to bigger
shortfalls than they are already facing. Recent events have served as a reminder of this.
Investing can be uncomfortable for a lot of people, but does it have to be?
It’s important to remember to stick to your long-term financial plan and avoid
emotional, headline-driven decisions. To help ease some of the angst, consider
these three tips to help you keep things in perspective, and stay calm andinvested.

1. No one (really) can time the market
Even the most sophisticated of investors will tell you that it is virtuallyimpossible to accurately predict the market’s short-term moves. In fact,
mistiming can be disastrous to investment returns. In a low growth/lower
return environment, what does this mean for investors saving for retirement?
In today’s reality, where investors are more likely than ever to face retirement
income gaps, they can’t afford to miss out on returns.
We believe in the power of being invested over the long-term. Not being
invested (strategy #5 in Exhibit 1 on page 2), and simply leaving money incash, yields by far the worst ending wealth of any investment option. Eveninvesting your money on the worst days of the market (strategy #4) is still morefavorable than not investing at all.

2. Nothing, especially volatility, lasts forever
There have been many times throughout history where markets have pulled
back—but these relatively short periods are most often followed by the mostfavorable returns. Unfortunately, due to loss aversion*—one of the principles
of behavioral economics—people tend to remember the bad twice as much as
the good1. This means that despite having experienced the longest bull run inhistory, even a few bad days in the markets can cause investors to rethink theirlong-term investment strategy.
Since 1926, stocks have more often finished the calendar year in positive rather
than in negative territory—in fact, 73% of the time, as evidenced in Exhibit 2
on page 3. It’s extremely challenging to predict whether a calendar year return
will be positive or negative.

“In the financialmarkets,
hindsight isforever 20/20,
but foresight islegally blind.
And thus, formost investors,market timing
is a practicaland emotional
impossibility.
Benjamin Graham,
The Intelligent
Investor*Loss aversion is people's tendency to prefer avoiding losses to acquiring equivalent gains
Source: Seeking Alpha: The Persistence of Aversion: Why Investor Pains Hurts Twice. https://seekingalpha.com/article/4240745-persistence-ofaversion-why-investor-pain-hurts-twice

1

1 /Not a deposit. Not FDIC Insured. May Lose Value. Not Bank
Guaranteed. Not Insured by any Federal Government Agency

Keep Calm and Stay Invested / Russell Investments

Exhibit 1: Be invested, stay invested
Record $20,750,000,000,000 in cash

12

3

45

Perfecttiming

Firstof year

Dollar cost
averaging

Perfectly wrong
timingHolding cash,
no investment

This strategy is ideal,
yet implausible.

Investing your money
for the most amount oftime can yield the mostgain in most market
environments

A popular rules-based
strategy. Can help
investors cope withuncertain or volatile
markets.

Despite bad timing,
assets invested in themarket may grow fasterthan if left in cash.

Holding cash too long
can result in the least
growth of wealth.

Hypothetical ending wealth after investing $12,000 per year
Period ending December 31st, 2023

$254,535$242,792$232,171$211,189$128,139

1Investing at annual
market low point

23

Investing on the first Investing on the firstday of the year
day of each month45Investing at annual
market high point

Not investing,staying in cash

Note that one year represents a 12-month period ending December 31st.
Assumes an investment of $12,000 per year into a hypothetical S&P 500 Index portfolio with no withdrawals between Jan 1stst, 2014 and Dec 31st,2023. Source: Russell Investments.
Cash return based on return of $12,000 invested each year in a hypothetical portfolio of 3-month Treasury bonds represented by the FTSE Treasury
Bill 3-month Index without any withdrawals between Jan 31st, 2014 and Dec 31st, 2023. Source: Morningstar.
Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are
not indicative of any specific investment.
Hypothetical analysis provided for illustrative purposes only.
Cash in the title: M2: M2 is a measure of the money supply that includes cash, checking deposits and deposits that are easily converted to cash, suchas bank accounts. As of Dec. 2023

3. Diversification matters
Having a robust strategic asset allocation with regular rebalancing, or investingin a professionally-managed asset allocation solution like a balanced or target
date fund, can potentially enhance returns, but more importantly, manage
volatility. Periods of panic provide an equally good opportunity to ensure thatinvestors have the right attitude when it comes to risk. Asset classes change
leadership regularly. Russell Investments has consistently advocated forinvestors to consider a global multi-asset approach to investing. We believe
doing so puts investors on a smoother path toward meeting goals. Put simply,
investors diversify because the future is uncertain, and no one can predict withcertainty which asset class will win or lose over the upcoming cycles.

“The only
investors whoshouldn’t
diversify arethose who areright 100% ofthe time.”
John Templeton2

Source: Financial Express: How legendary investor John Templeton learned to put his eggs in different baskets, by Sushruth Sunder. https://www.
financialexpress.com/market/how-legendary-investor-john-templeton-learned-to-put-his-eggs-in-different-baskets/847894/

22 /Not a deposit. Not FDIC Insured. May Lose Value. Not Bank
Guaranteed. Not Insured by any Federal Government Agency

Keep Calm and Stay Invested / Russell Investments

Exhibit 2: Historically it has paid to own stocks
Calendar year S&P 500® Index returns 1926-2023

1931

2008
1937

-50% -40%

2002
1974
1930

-30%2022
2001
1973
1966
1957
1941

-20%

2018
2000
1990
1981
1977
1969
1962
1953
1946
1940
1939
1934
1932
1929

-10%

2015
2011
2007
2005
1994
1992
1987
1984
1978
1970
1960
1956
1948
1947

0%

2020
2016
2014
2012
2010
2006
2004
1993
1988
1986
1979
1972
1971
1968
1965
1964
1959
1952
1949
1944
1926

10%

RATES OF RETURN

2023
2021
2017
2009
2003
1999
1998
1996
1983
1982
1976
1967
1963
1961
1951
1943
1942

20%

2019
2013
1997
1995
1991
1989
1985
1980
1975
1955
1950
1945
1938
1936
1927

30%

1958
1935
1928

40%

1954
1933

50%

60%

73% of the time, U.S. equity market has posted calendar year returns above zero
Represented by the S&P 500® Index from 1926-2023.
Index returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Indexes areunmanaged and cannot be invested in directly.

The bottom line
While navigating uncertainty and extreme market volatility is difficult, it’s important to keep the big picture in mind and stay
focused on your long-term goals. Historically, over the long term, markets have been positive more often than negative, as
shown in Exhibit 2 . Volatility is a reality, even in positive markets, and diversification is a tool every investor can rely upon tohelp withstand market corrections. Rather than reacting to volatility and trying to time short-term market gyrations, Russell
Investments believes investors should base their investment strategy on personal long-term goals, time horizon, financial
circumstances and risk tolerance, not on what markets are doing at a given moment. Staying invested has generally been abetter option. Economic uncertainty will always be a cause for anxiety, so it’s important to remember these guidelines when themarkets get choppy.

Russell Investments / Keep Calm and Stay Invested

Not a deposit. Not FDIC Insured. May Lose Value. Not BankGuaranteed. Not Insured by any Federal Government Agency/ 3

About Russell Investments
For more than 50 years, we’ve helped guide the investments of some of the world’s largest companies, foundations and pension
plans. Working with your financial advisor or your plan sponsor, you can benefit from this same expertise through our multiasset, outcome-oriented solutions that are strategically designed to address investors’ wide-ranging investment needs andobjectives. No matter what stage of life you are in, we believe how you invest matters. That’s why we provide investment
solutions that are designed with your goals in mind.

IMPORTANT INFORMATION
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding
the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should
not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
The S&P 500® Index: A free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common
stocks actively traded in the United States. The stocks included in the S&P 500® are those of large publicly held companies that
trade on either of the two largest American stock market exchanges: the New York Stock Exchange and the NASDAQ.
Indices and benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance, are not aguarantee of future performance, and are not indicative of any specific investment. Index return information is provided byvendors and although deemed reliable, is not guaranteed by Russell Investments or its affiliates. Due to timing of information,
indices may be adjusted after the publication of this report.
This material is not an offer, solicitation or recommendation to purchase any security.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not
representative of a projection of the stock market, or of any specific investment.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do nottypically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting
to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general information only and are not intended to provide specificadvice or recommendations for any individual entity.
Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P.,
with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments’
employees and Hamilton Lane Advisors LLC also hold minority, non-controlling, ownership stakes.
Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to theRussell trademarks, which the members of the Russell Investments group of companies are permitted to use under license fromFrank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with FrankRussell Company or any entity operating under the “FTSE RUSSELL” brand.
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First used: March 2020 Updated May 2024.
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