The bottom line is that a triple-digit dip in the market today is less significant than a similar decline even ten years ago. And, it's certainly not a sole reason to jump out of the stock market. Riding the wave by diversifying and thinking long-term One of the best ways to cope with swings in the market is to ignore them as best you can. As a retirement investor, you're generally in it for the long haul, unless you are nearing retirement. Some investors try to time the market, or jump out on a downswing and jump back in on an upswing in order to avoid losses and garner bigger gains.
Market timing is very difficult to do successfully, even for the pros.
You have to be right twice, when you sell and when you buy. Try to face any market uncertainty by keeping your goals in mind and following a disciplined, consistent, and diversified strategy. Try not to toss your carefully allocated portfolio out the window just because of a calendar change or a dip in the market. If you feel you need to review your asset allocation, now is a good time to do it before you are tempted to make rash, emotional changes in response to anticipated or actual market movements. Copyright 1999-2001, Annuity Board of the Southern Baptist Convention.