The Importance of Sticking to a Long-Term Financial Plan During Market Volatility

Today, it seems like we’re constantly bombarded with negative news about economic or geopolitical events – all of which can cause stress, anxiety and fear. And for some people, that fear, combined with the volatility we often see around these events, may cause them to get out of the stock market. In this episode of Edelman Financial Engines’ Everyday Wealth™, Jean and wealth planners Andy Smith and Isabel Barrow talk about why that’s almost always the wrong move, and how having a long-term investment strategy can help you avoid obsessing over short-term volatility, while keeping you focused on achieving your financial goals.

Then, Jean talks with David Berube, a professor of communications at North Carolina State University, about how the media often distorts events negatively using sensationalism and why they have an incentive to do so, and how to evaluate the validity of a media source and cut through all the “noise.”

Ms. Chatzky receives cash compensation for acting as host of the Everyday Wealth podcast and for related activities and therefore has an incentive to endorse Edelman Financial Engines and its planners. That compensation is a fixed sum paid on an annual basis; and reimbursement for certain expenses. The amount paid each year does not vary, is not based on show content or any results-dependent factors (e.g., popularity of the show).

The information being provided is for informational and educational purposes only and should not be construed as investment advice. Although some of the statistical and market information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness. You should consult with a financial advisor to help determine the best options for your particular circumstances.

Investing strategies, such as asset allocation, diversification or rebalancing, do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. All investments have inherent risks, including loss of principal. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Past performance does not guarantee future results.

The views and opinions expressed by David Berube, a Professor of Communications at North Carolina State University, are solely his own and may not reflect the views or opinions of EFE or its planners.

© 2023 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services provided by Financial Engines Advisors L.L.C., a federally registered investment advisor. Certain services provided on an educational or guidance basis only. Results are not guaranteed. Produced November 2023.

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