Tune in to the stock market on any given day, and you’ll likely find the major averages zooming in one direction or the other. Sometimes the moves are choppy, rising and falling while generally heading nowhere, while other times the market can seemingly run for weeks or months in one direction.
Article Category: Volatility
With each and every investment that you make, you're going to be giving up one benefit in exchange for another. Most of the time, this trade-off is between risk and potential return. Understanding this trade-off at a conceptual level will go a long way in helping you to select the right investments (or strategies) on your path to retirement.
If you're going to sail into retirement with a nice fat portfolio and big sacks of money strewn across your deck, then you're going to have to deal with some ups and downs along the way. Financial markets are volatile by nature, and how you respond to these critical, anxiety-inducing periods can make the difference between a meager retirement, and a life of luxury.