Recent Market Volatility: What to do

The stock market moves up and down—it’s completely normal. Market volatility refers to these price swings, which can sometimes be dramatic. While it might feel stressful, smart investors stay focused on the long term.

Why Is the Market Selling Off?

Recently, the stock market has experienced a downturn due to factors like rising interest rates, inflation concerns, and global trade uncertainties including tariffs.  When borrowing costs increase or supply chains are disrupted, businesses and consumers may spend less, uncertainty increases and that can lead to market volatility.

Why It’s Important - What should you do?

Market sell-offs can create short-term uncertainty, but they also may present opportunities. While price swings may feel unsettling, historically markets have recovered over time. Staying invested and making strategic decisions can help you navigate these ups and downs.

The Stash Way to Handle Volatility

✅ Buy and Hold – Investing is a marathon, not a sprint. Market dips are temporary, and long-term investors who stay focused on the long term are often rewarded.
✅ Add Little Bits – Buying small amounts regularly (a strategy called dollar-cost averaging) can help lower your average cost per share.
✅ Diversify – Don’t put all your eggs in one basket. Owning a mix of stocks, ETFs, and bonds can help balance your portfolio when the market is shaky.

Fun Fact

Even during tough times like the 2008 financial crisis, the stock market eventually bounced back to reach new highs.

Market ups and downs are part of investing. Stick with the Stash Way, stay the course, and keep building your future!

Pro Tip: Keep adding little bits - diversified ETFs such as iShares Core S&P 500 ETF, iShares Core MSCI EAFE ETF, and Schwab US Dividend Equity ETF can be steady portfolio builders.