What is market volatility?
Market volatility refers to fluctuations in the price of investments. In times of economic stress, markets tend to be more volatile, and you might see some big ups and downs.
Selling investments during times of market volatility is likely to do more harm than good because you could be locking in losses—and derailing your financial plans.
Making decisions in the heat of the moment rarely goes well. Instead, figure out your approach to market volatility—and stick to it.
Fresh Off The Press
Why You Should Consider Converting Your IRA
If the market is down, you might be doing your future self a favor by converting all or some of your Traditional IRA into a Roth IRA.
How To Transfer Assets In Volatile Markets
Have a high-fee or high-risk brokerage account that you’ve been avoiding transferring due to potential tax consequences?
Our Portfolio Is Built To Withstand Market Drops
While we don’t know when exactly a market drop will happen, we’ve already prepared for it.
Our Advice On What To Do
The stock market goes up on average, over time. We believe that disciplined strategic investing is the best way to build wealth in the long run. An investor who focuses on timing the market has the greatest potential for losses.
However, if you’re still worried, there are still some actions you can take:
1. Do...nothing! The act of staying put is often the best thing an investor can do. There is evidence that panic-induced account changes and account monitoring can end up hurting your goals.
2. Tweak your risk level. But keep in mind that changing your allocation may cause taxes.
3. Temporarily divert your deposits into our low-risk cash account, Cash Reserve.
Experiencing Short-Term Losses Is a Part of Long-Term Gains
Far from unusual, downturns are an integral part of even the highest returning investments.
How Betterment Helps Keep You on Track Through Tough Markets
Historical data suggests that customers who follow our advice will stay on track to reach their goals, even in a market downturn as bad as the 2008 crisis.
Let's ride out this rollercoaster together.
We are here to help each of our investors achieve the best possible returns while taking on the appropriate level of risk, no matter what's happening in the market.Hop on, let's go.