Vice President of Investments, answers your questions. Even though you always find many people who have an opinion, no one knows how long market corrections, or even bear markets, will last. First and foremost, you must stay long-term in your thinking, regardless of what the market is doing. To be successful timing the market, one has to make two good decisions. When to get out and when to get back in.
Most people have a very difficult time being right twice.
And if you are right only once, it can be very costly. It is also important to know how different types of investments have performed historically. It is also important to keep in mind that this 70 plus years of performance includes up markets, down markets - every kind of volatility you can imagine throughout the years. If volatile markets make you nervous, you probably should not have most of your retirement account invested in stock investments. On the other hand, if your tolerance for risk is high enough, and you have at least 10 years until you will start drawing on your retirement funds, stock investment may increase your long-term returns.