Markets correct. It happens all the time. Corrections of 10% happen on average once per year. The most recent 10% correction occurred due to fears surrounding slowing growth in China, falling prices for oil and other commodities, and concerns over geopolitical events in the Middle East and Korea. These macro-economic uncertainties are compounded by talking heads on business news channels focusing on the events hoping for increased ratings.
As an investor these times can be disconcerting. It is important not to panic, but rather, remember the plan you put in place with your financial advisor at Hills Bank, and stick to it. Together, you agreed on a strategic asset allocation designed to take advantage of the volatility in the market by trimming stocks when the markets are strong, and buying when markets are weak. This rebalancing will minimize your risk, and maximize your return over time. Adherence to a strategic plan and periodic rebalancing is the key to successful long-term investing.
If you wish to review your strategic asset allocation or talk to someone about your account please do not hesitate to contact a member of the Hills Bank Wealth Management group for an in-depth account review.Some trust products and IRA contributions/balances are not a deposit, not FDIC insured, not insured by any federal government agency, not guaranteed by the bank, and may go down in value.