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Spooked by Short-Term Volatility? Thumbnail

Spooked by Short-Term Volatility?

The end of summer is fast approaching, and what a summer it has been.

As we look ahead to the upcoming national elections, it is natural to feel uncertain about the future and our financial well-being, especially in light of the recent volatility in the stock and bond markets.  

Month to month, market volatility can be unsettling, but it is a normal part of investing. Short-term fluctuations, like those we've seen recently, can be influenced by a variety of factors, including political events, economic data, and investor sentiment. However, it is crucial to keep a long-term perspective. Although past performance doesn't guarantee any result, history has shown the stock market can be unpredictable in the short term, they have generally trended upward over the long run.

To illustrate this point, consider the difference between month-to-month returns and ten-year returns of the stock market. The accompanying graph demonstrates the variability of short-term returns compared to the upward trajectory of long-term investments. 

This visualization highlights the importance of focusing on long-term financial goals amid the month-to-month chaos of capital markets. 

As we navigate the complexities of election season and market volatility, maintaining a disciplined approach to your portfolio and financial plan is paramount to help achieve your long-term financial objectives.

That is what Coffeehouse Investors are all about.

Long-Term Perspectives

Build an investment and financial strategy for the long term. If you want to discuss how to do that within your financial journey, let's connect on a complimentary strategy call* and develop a plan for your future. 


Investing strategies, such as asset allocation, diversification or rebalancing, do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. All investments have inherent risks, including loss of principal. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Past performance does not guarantee future results.

© 2024 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. The Coffeehouse Investor is an educational platform provided through Edelman Financial Engines, LLC. Any educational content is for informational purposes only and does not constitute investment, legal or tax advice. Third party content and links should not be construed as an endorsement of any services, products, guidance, or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Any advisory services are provided by Financial Engines Advisors L.L.C., a federally registered investment advisor. Certain services are available on an educational and guidance basis only. Results not guaranteed. More information on Edelman Financial Engines and its services may be found
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