The Cycle of Investing
Provided by MidAmerica Financial Resources
When markets fall, it’s easy to forget that downtrends are part of the investing cycle. So, when prices slip, it’s a good time to review some common terms that you may be hearing that describe today’s financial markets.
The first is “pullback,” the mildest form of a drop in the markets. You might hear a market commentator refer to a dip of 5% to 10% after a peak as a pullback.
The next term is “correction,” which is used when markets drop 10% to 20% after a peak. Then there is a “bear market,” where the drop is 20% or more since the last peak.
When prices are trending lower, it’s easy to second-guess yourself. But over the years, I’ve found that doesn’t help.
We’ve aligned your investment strategy with your goals, time horizon, and risk tolerance. We built your portfolio anticipating that there will be good times and bad.
If you find yourself thinking “this time, it’s different,” please reach out as soon as possible. It’s important that you feel comfortable with our approach and we’d be happy to talk with you.
MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@lpl.com www.mid-america.us
Securities and advisory services offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to LPL.
This material was prepared by MarketingPro, Inc. for use by MidAmerica Financial Resources. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
