With the uncertainty of COVID-19, many Americans are faced with the fear of market fluctuations. While it may be a challenge to keep calm through the market’s ups and downs, these fluctuations are part of the normal process. Investors should not make rash decisions based on the fluctuations of the market because they could end up missing out on investment earnings. Ten good days in the market could potentially lead to reducing an investment by half if the investor decides to withdraw their funds. 

Consumer spending is great for the economy and the market because the more people spend, the better the economy is — and the better the economy is, the better the market is. Companies that do exceptionally well through producing great products and services that consumers buy tend to have better stock market performances. Investors tend to look at consumer-spending patterns because it plays a factor in the market changes. 

During a market low, keeping a diversified portfolio will help keep investments at a lower risk because it spreads your funds among different types of investments such as stocks, bonds, and short- and long-term investments. Re-evaluating risk ratings each year is important in order to stay on track for retirement needs. If you are looking into investing during a market low or in general, determining which type of investment to fund will depend on the risks that you want to take. The higher the risk, the higher the loss may be if the market fluctuates down — but the investment may also have great rewards if it does well. 

If you are looking to invest or to re-evaluate investments, speaking with a financial advisor is recommended to help you with current or future investments. Financial advisors can help look at and determine the risk rating that is suitable for the investor based on their financial goals. It is also beneficial to speak with a financial advisor because they can give you a realistic look at the market and are not invested into specific products and services. They also tend to be more knowledgeable on how much an investment may lose or gain through the market fluctuations. Staying calm throughout the ups and downs of the market and speaking with a financial advisor will keep those investments on track for retirement. 

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The GECU Investment and Trust Services team is available to help you. Visit gecu.com/invest today or call 915.774.1765, for your no-cost, no-obligation appointment.

Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Trust services available through Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.

FR-3066653.1-0420-0522

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