Investors today are witnessing what might eventually be described as a once-in-a lifetime event in the capital markets. The markets are experiencing more volatility than seen in a generation, and with each new leg of the crisis, investors’ responses are increasingly emotional. The most important thing that long-term investors can do is to avoid engaging their emotions and regain their bearings by focusing on the things that we do know.
The Big Picture
When an unsettled economic climate combines with an above average increase in the cost of living, you may be tempted to head for safety by getting out of stocks. Or you might decide to cut back on the amount you’re saving for retirement or stop contributing altogether. But before you make any decisions about your retirement investments, take a deep breath — then step back and look at the big picture.