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.
President & CEO
1“Is There Ever a ‘Bad’ Time to Invest?” schwab.com, 02/17/2017.
2“7 Investing Principles,” schwab.com.