Like the question of liquidity, knowing the time frame of an investment can influence your portfolio decisions. Some investors want to see results in 6 to 12 months, while others seek long-term appreciation and are comfortable holding on to their investments throughout market fluctuations. You may be saving for a particular purpose, like your child s college fund, or for a new house or retirement. All these goals have different time frames in which you d want to see investment growth. If the investments in your portfolio fit your needs and investing personality, it may not be necessary to make major changes to your portfolio in times of high market volatility.
Planning is always better than reacting.