Predicting the market is not like predicting the weather. There are no high-tech gadgets or radar systems to predict the highs and lows that may lie ahead. Without knowing the exact moment to buy or sell, it is easy to miss the market, which could prove costly.
Diversification is important. It is a risk management technique that mixes a wide variety of investment options within a portfolio and is designed to help reduce the impact of any one asset type on overall portfolio performance.
Generally, sticking to a well thought out investment strategy is one of the best ways to benefit from long-term market performance. Remember, past performance doesn’t guarantee or predict future returns.
Monitoring the market during fluctuations and being aware of risk management strategies can help investors choose whether to stay the course as they work toward their retirement objectives.