Financial Focus

Concerned About Market Volatility? Study Your History

If you’re an investor, stock market declines can be upsetting. But you can put them in perspective by taking a quick look at the past.

To begin with, market declines have been a normal part of the investment process. And these declines usually offer an opportunity to buy quality investments at a lower price.

Here’s another “history lesson” to consider: The U.S. economy has proved amazingly resilient. Since the end of World War II, each recession has averaged 10 months — and each economic expansion has averaged almost five years. Recessions often begin and end without warning, so it pays to be fully invested in preparation for the next market rally.

Stock market slumps aren’t pleasant. But if history is any guide, you can give yourself a better chance to survive a market decline by owning quality investments and holding them for the long term. Ultimately, your patience may give you an opportunity to be rewarded.

Got questions? Contact Joshua Farley Financial Advisor, located at 3505 College Ave., Ste D can be reached at 618-462-4465.