Long-term Investing and Market Fluctuations

January 22, 2008

Given the recent fluctuation in the stock markets, it is important to remember the value of investing for the long term. It’s time in the market, rather than timing the market, that has paid off for many investors over time. Weathering ups and downs over time can allow investors to benefit from longer-term market strengths, and to avoid the risks of attempting to time market changes.

While the value of stocks may change suddenly at times, it is a good idea to carefully consider your overall portfolio and how it relates to your goals before making any changes. Creating a portfolio that matches your individual tolerance for risk can help you prepare for greater than typical volatility in the markets and avoid overreacting. Diversifying within your portfolio by choosing funds that invest in different types of companies and use different investment strategies can also reduce your concern over day-to-day returns.

ICMA-RC provides the following planning articles and resources to help you determine if your portfolio is on track with your retirement goals:

• Keeping a Long-Term Focus Can Help Returns
• Investing for the Long Term
• Reduction of Risk Over Time
• Investing Dos and Don'ts

These resources and more can be found on the Planning & Tools and Market View sections of the ICMA-RC Web site.

You may also find it helpful to register to receive our Market View Mail every week. Sent by e-mail every Friday, the Market View Mail includes a summary of the markets for the week, a brief explanation of a different Economic Indicator each week and our Chart of the Week providing interesting insight into different areas of investing.