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Making changes for the wrong reasons can hurt performance

If you're tempted to make changes to your investments based on fear or uncertainty, remember that markets are usually cyclical and don't forget your long-term strategy. While you can't control what happens in Washington or on Wall Street, you can control how you prepare and respond. Panic is not a plan.

We are here to help you make decisions based on research and deliberation - not emotion and speculation. We know that volatile markets can and WILL happen as part of normal market cycles, so our investment committee works to mitigate the negative impacts of market swings in your portfolio.

Learn more about Cornerstone's Investment Committee

Consider a few notable points in this illustration:

  • If you had invested $10,000 in the S&P 500 Index from  January 1,1988 to December 31, 2019 you’d have $265,240.

  • However, if you had pulled out of the market for whatever reason and missed just the best 5 days in 31 years - you would have only $175,959.

  • If you missed the best 50 days – only the best 50 days out of those 31 years – you would ONLY have $25,407.

Hypothetical growth of $10,000 invested in the S&P 500 Index from 1/1/1998 to 12/31/2019

How To Help Mitigate The Negative Impacts Of Market Swings

Though it may be tempting to concentrate on losses caused by price fluctuations, remember that volatility - and changing price trends - may offer opportunity for gains.

Market Volatlity Means Something Different To Your Personal Situation Whether You're Age 30, 40, Or 60.

Cornerstone Wealth Advisor, Daniel Reinders, talks about dealing with market volatility through life's phases in this market update video from May 2020. 


Raymond James Financial Advisors do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

This content is developed from sources believed to be providing accurate information. This content is for general information only and is not intended to provide specific advice, an endorsement, or recommendations for any individual. Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. To determine what is appropriate for you, consult a qualified professional.