Why market fluctuations are usually no reason to panic

The stock market goes up and down. Everyone knows that. And yet, if you’ve just started or you see your portfolio value drop, it can feel unsettling. What should you do? Make an adjustment? Or simply do nothing?

Important to note: investing involves risks. You may lose part of your investment. Past performance does not guarantee future results. The information in our blogs is general and not personal investment advice.

Fluctuations are Part of It

If you zoom out to decades of stock market history, you mainly see one upward line. The peaks and valleys almost disappear in the bigger picture. Historically, global stock investing yields an average of about 8% per year.

Staying calm helps

Many people don’t lose money because the market moves, but because they panic-sell at the wrong time — and then get back in later when it “feels safe.” Timing the market (knowing when to exit and enter) is actually very difficult.

Passive investing, which is what UpToMore is designed for, is all about not trying to time the market, but calmly and consistently following your strategy. This is known as passive investing. If you invest monthly, you sometimes invest when prices are high and sometimes when they are lower.

History shows that passive investing usually yields better returns than active investing. Many people also find it more peaceful, as you don’t have to act on every peak or dip.

But can you be sure of that?

We cannot give any guarantees. However, we can offer some sincere advice: stick to your strategy, invest regularly, and invest for the long term. This gives you the best chance of a great result, through both good times and bad.

Want to know more about safe investing? Then read the article Safe investing.

Important to note: investing involves risks. You may lose part of your investment. Past performance does not guarantee future results. The information in our blogs is general and not personal investment advice.