Markets do what markets do. Historically, the market drops about 10% about 1x per year. It drops about 20-30% about 1x every 3-5 years.
Planning for downturns in advance, by having an appropriate allocation, by diversifying your holdings, by adding income guarantees, by adding downside protection, can all help mitigate the inevitable market pullbacks.
One of the biggest mistakes investors can make is treating market volatility as a surprise. It isn't. It's part of the process of investing. The question isn't whether the next correction or bear market will happen. The question is whether your financial plan is prepared for it when it does.
I often remind clients that successful investing isn't just about how much you make when markets are going up. It's also about how well you protect what you've built when markets go the other direction. Having a plan in place before emotions take over can make all the difference. It's about staying disciplined, understanding your risk tolerance, and making sure your portfolio is aligned with your goals, your timeline, and your need for income.
Remember, you don't have to predict the next downturn to prepare for one. You just have to have a strategy.
Call me for help.
The views stated in this letter are not necessarily the opinion of Cetera Wealth Services, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.