Market Volatility
It’s a fact. The market reacts to domestic and worldwide events, such as inflation, rising interest rates, and foreign turmoil. Try these investing tips to help decrease your fear and increase your confidence — no matter what the market does.
Be Prepared for Market Swings
When you invest for retirement, you are investing for the long term. Your retirement could last decades, so even if you are planning to retire in the next few years, often the best approach is to ride out short-term market declines.
Don’t Panic … Keep Saving Regularly
Volatility is when the market rises and falls rapidly. You may find this roller coaster effect unsettling. When making important financial decisions, be as emotionless as possible. Investors who panic and sell in a down market lock in their losses and usually miss gains when the market rebounds.
Making regular contributions to the Conduent Savings Plan allows you to take advantage of market swings. Think of market corrections as an opportunity — you can buy more shares when prices are low.
Manage Risk
The reality: investing comes with risk. The good news: these smart steps can help lower your investment risk.
Diversify. Putting your money in different baskets can help your account better withstand market ups and downs over the long haul. When one fund is underperforming, typically other funds in your portfolio may hold steady or be on the upswing.
Know your risk tolerance and time frame. Make sure you’re comfortable with the amount of risk you’re taking. Consider when you’ll need the money. For example, if you’re 30 years away from retirement, you have more time to recover from market setbacks, so you could invest more aggressively. If you’re 5 years away from retirement, think about whether you want to invest more conservatively.