Scott Puritz, Managing Director of Rebalance, shares how to reassure a client when the market goes down. More on how Rebalance takes the emotion out of retirement investing.
Scott Puritz: One of the challenging aspects of long term investing is dealing with the fact that stock markets go up and stock markets go down. When markets drop, or correct, as the industry likes to call it, we tell our clients to relax, to not panic, and to remember that they’re in this for the long term. We remind them that we have a plan in place, and because of systematic rebalancing the portfolios will adjust accordingly. In any 5-year-period stocks will always recover and the time horizon for virtually all of our clients is 5 years or more. The system will work. Relax and stay the course.