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  • Writer's pictureSteven Schoenberger

Stay Focused! - Q3 Market Update



Sometimes I am rushing to get somewhere, or I find myself stuck in traffic. I get anxiety thinking about being late and missing out. When this happens, I try to remind myself - it's not about the journey, it's about the destination. The short-term discomfort on the ride should not upset the ultimate goal of where I want to go. When it comes to the stock market, we often feel these same short-term emotions, and need to remind ourselves to maintain a long-term view. The third quarter of this year was one of these times. Over the third quarter we saw volatility, as measured by the VIX, increase, while the S&P, and other broad market indices, were generally down. An inverse correlation between volatility and markets may be expected, but after a period of rapid recovery and expansion (since the end of March '20), these shifts can be unsettling! Don't get distracted by volatility!! It is precisely at times like these, we encourage investors to reevaluate goals and recommit to their investment strategy. While no one can know exactly what the road ahead will look like, remaining focused on where we want to go helps us stay on track. Planning ahead and rebalancing portfolios puts us, the investor, in a position to capitalize on future market fluctuations and gives us the reassurance to stay the course. We do not wan to compound a small temporary loss into a large permanent one. Changing lanes in the middle of traffic can look enticing, but a faster route to our destination is usually elusive. Avoid the temptation to introduce unexpected risks and wander into unfamiliar areas. Stay the course. Try to enjoy the ride. But in the end, remember, when it comes to your financial independence, it’s all about the destination!


 

DISCLAIMER: Open Door Financial LLC is a registered investment advisor offering advisory services in the State of Minnesota and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.

This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendation made will be profitable or equal the performance noted in this publication.



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