Although the adrenaline of a roller coaster is fun for most, the recent stock market volatility has people nervous. For this reason I reached out to Anne McCabe Triana, CFP®, CRPC® President and CEO – Wealth Advisor at Curo Private Wealth, to calm our nerves. Anne had this to say:
“The important thing to remember about investing in the stock markets is pull-backs are a normal, healthy part of the experience. In fact, almost every year the S&P 500 drops and the average peak to trough sell-off has been 13.8% since 1980, while 76% of the time the S&P 500 has ended the year with positive returns (29 of 38 years). One of the reasons the average investor substantially underperforms the markets is they make emotional, impulsive decisions (ie. the get nervous with volatility and sell when the market drops), so we need to make sure we are managing our emotions and making rational decisions. Most of us are working on multi-decade goals, so we shouldn’t make long-term decisions based on short-term market fluctuations.”
In less than two minutes Anne gives up the update on the October market.