Down markets are inevitable, and they are also advantageous. Everyone wants to buy low and sell high, right? Well, down markets are the opportunity to buy low. Many investment indexes, whether U.S. or international, were negative for January. The U.S. based Russell 3000 index was down 10% at one point during the month before a rebound in the last few days.
When markets fall, they can be a blessing for those who are saving for the future. In fact, a market crash can be one of the best things to happen. Anyone who added to their investments during the 2008-2009 crash has been well rewarded.
How does this impact those who are retired and not actively contributing to a portfolio? A down market can also be beneficial. For astute investors, it’s a prime opportunity to rebalance, selling what is high and buying what is low. Even reinvesting dividends and interest payments are a way to buy low.
For more advice from Mark Ziety, Executive Director of WisMed Financial, and other advisors, please see this recent article in MarketWatch.
Wisconsin Medical Society Members can also download the 2022 tax brackets, retirement contribution limits, investment checklist and quick decision flow charts for Social Security and more from the new WisMed Mobile app.
For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750..
Mark Ziety, CFP®, AIF®
WisMed Financial, Inc. part of the Wisconsin Medical Society.
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