Don't Run From A Bear Market

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Don't Run From A Bear Market

If you have heard the story about the "Tortoise and the Hare," then you know the moral of that story is "slow but steady wins the race." That same approach may also be true when applied to investing. Correctly predicting the ups and downs of the market is an extremely difficult, if not, impossible task. Maintaining a consistent pace and keeping focused on your goals will help get you to the finish line.

Although successful market timing may improve portfolio performance, even top investment professionals cannot consistently time the market with accuracy. In addition, unsuccessful market timing can lead to significant opportunity and investment losses. When stock markets decline, investors may understandably be concerned. But it can help to remember that declines, even those severe enough to be called "bear" markets, are part of the market's natural cycle and historically have had limited durations. Of course, no one can predict the future with certainty, and past market performance is no guarantee of future results.

In the past, many investors who reacted to temporary market drops by liquidating their portfolios missed out on the substantial market rallies that ensued. An investor who panics may miss out when the market is testing new highs. The bottom line: Investors are generally well served by maintaining their investment discipline even during periods of above-average market volatility.

Contact your NYLIFE Securities Registered Representative or local General Office today.

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