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Expect the Unexpected

Despite the obvious virtues of investing, many find it hard to stomach the market’s unpredictability. When it’s up, they brace themselves for a correction; when it’s down, they worry it might never recover. And yet, over the long haul, those who stay invested during periods of market turmoil almost invariably come out ahead of those who don’t—regardless of whether they invest at the market’s trough or its peak.1

Of course, even the most stalwart among us can lose their nerve in the face of a market downturn. That’s why exposure to multiple asset classes is so important: Even if one area of the market is in free fall, others can be poised for outperformance. In fact, our research shows that a diversified portfolio of stocks and bonds generally loses less than an all-stock portfolio during down cycles, while still capturing significant gains during up cycles.2

If you’re unsure whether your portfolio is diversified enough, a good first step is to compare your current holdings against your target asset allocation using the Portfolio Checkup tool, by talking to your financial consultant or by calling us at 800-355-2162.

As we approach the end of the year, it’s a great time to give us a call or stop by your local branch for a portfolio review. We can help you strategize about how to keep on track so you’re ready to face the future—whatever may come.

Sincerely,
 

Walt Bettinger

President & CEO

 

1Is There Ever a ‘Bad’ Time to Invest?” schwab.com, 02/17/2017.

2“7 Investing Principles,” schwab.com.

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Important Disclosures

Diversification and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers are obtained from what are considered reliable sources. However, their accuracy, completeness or reliability cannot be guaranteed.

(1117-7BTM)

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