Dear Investor:

With so many factors impacting the market lately, investors have asked me what is the best course of action. In times of market volatility, there are five guiding principles we suggest investors like you may want to follow. I thought they would be of interest, and wanted to pass them along.

In times of market volatility…

1. You may want to do nothing. While emotionally difficult to sit and do nothing, recent history shows that opportunities for gains are lost by taking money out during a down market. This is one of the most common mistakes individual investors make.
2. Don’t put all your eggs in one basket. Diversify. Not only among many stocks but also many types of investments. Investing in different asset classes helps reduce investment risk.
3. Time. Not Timing. The longer you leave money in the stock market the greater the chance for potential returns. Of course, past performance is not an indication of future performance.
4. Invest Regularly. Regular monthly or quarterly investments, regardless of market movements, allow you to take emotions out of decision-making and can help you keep a long-term perspective. Periodic investment plans do not assure a profit and do not protect against loss in declining markets. Please consider your ability to continue purchases through periods of low price levels.
5. Follow an Investment Plan. Stay on course by following an investment plan catered to your objectives, risk tolerance, and individual needs.

Each investor’s situation is unique, so I encourage you to contact me at 856/985-1717 so we can review your investment portfolio to assure it is helping you to achieve your top financial priorities. I look forward to hearing from you.

Sincerely,

John A. Heald CFP, ChFC, CLU