Could the financial news headlines be more daunting?
Trade uncertainty and its economic ripple effects are behind most of these headlines. (Read our post for the “real” impact of tariffs.)
However, a crucial point often absent in media coverage is the historical link between market volatility and long-term portfolio growth.
For Example:
The below chart depicts the growth of one dollar from 1926 till 2024. The red lines highlight 20%+ market drops.
As you’ll see, time after time the market bounces back—even higher.
Your Financial Plan
We’ve built your financial plan to navigate market volatility.
Candidly, if you want long-term portfolio growth, then the price you pay is short-term volatility.
Unsurprisingly, we’ve seen this recent volatility before, i.e., during Covid. And, we bounced back from that—even higher!
Uncertainty drives volatility.
No one knows when the volatility will end. Nevertheless, we’re confidently buying valuable companies on sale.
I encourage you to stay the course and maintain your financial plan.
Reach out with any concerns or questions.
–David Bunker, Financial Advisor & Licensed Fiduciary
P.S. Thank you to everyone who requested a copy of Bill Perkins’ “Die With Zero.” I was thrilled by the response following last month’s email, How To Spend Confidently & Without Regret in Retirement, where we discussed the book. I still have a few copies available, so please let me know if you’d like one.
Before You Go
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This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.