Investing in Turbulent Times

With all of the ups and downs, some investors have abandoned the markets. But they may be missing opportunities.  After all, long-term investing is not about timing the market. It’s about time in the market. Historically, stocks have offered greater long-term earnings potential than any other investment^* and can provide growth opportunities in a well-balanced portfolio. 

Dollar cost averaging is a simple investment strategy that helps you maintain a disciplined course through fluctuating markets. Rather than trying to "time the market" with a "buy low, sell high" strategy – a risky path that’s difficult even for professional money managers – a dollar cost averaging program may be a way to invest more efficiently when consistent investments are made over time.^**

 

How it works: Through payroll deduction, you make steady contributions to your retirement plan, buying mutual fund shares at the current price. As the prices drop, you’ll be able to buy more shares with each contribution; when prices rise, less shares. By investing a fixed amount on a regular basis, such as at each pay period, you may get more for your money over the long term.