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Financial News

Oct 11, 2018

Markets Go Down, Don’t Panic

By Brandon Krieg

We believe in a strategy you can use for the long-term, a note from our CEO.

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Will the markets go up and down? YES.

One of the questions I get asked when the market goes down is, “Should I sell?”

My answer, which I’ve formed over the past 20 years, is not necessarily.

Selling is often the wrong thing to do. We encourage you to follow the Stash Way.

The U.S. has a strong economy, but occasionally interest rates rise, which the markets sometimes don’t like. Recently rising bond yields and tech stocks triggered a sell-off.

Think of an angry three-year-old child. He or she eventually gets over it. Markets do too. I have seen this movie play out time and time again. (I also have three kids!)

History shows us

Over the past 15 years, there have been turbulent periods in the market. Check out the graph below.

You’ll see gains and declines through the dot-com bust, 9/11, the Great Recession, wars in Iraq and Afghanistan, and four separate presidential administrations. You’ll see how staying the course is oftentimes the way to go.

The key to “investing” through market volatility, is to invest small amounts on a regular basis. Auto-Stash allows you to do just that. If you have it on, keep it on. If you’ve never tried it, now is the time. It’s an automated way to buy investments while they’re going up and when they’re going down. (This is known as dollar-cost averaging, and it’s really important.)

Long-term investors (that’s you) shouldn’t be concerned with timing the market. I’ve said this before and I’ll keep saying it—no one can predict exactly what will happen tomorrow or next week.

Stash is your investment adviser, and our goal is to look out for you and your interests by helping you continue to save and invest for your future. Although we can’t predict the future, try not to sweat the ups and downs.

It’s all about the time you are in the market that counts, not how you time it.

Brandon Krieg
CEO – Stash

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Written by

Brandon Krieg

Brandon Krieg is the CEO and co-founder of Stash.

*Disclaimer: This graph is not a prediction or projection of performance of an investment or investment strategy. Source: Macrotrends (2018)

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