When markets fall, it's easy to forget that downtrends are part of the investing cycle. So, when prices slip, it's a good time to review some common terms that you may be hearing that describe today's financial markets.
The first is "pullback," the mildest form of a drop in the markets. You might hear a market commentator refer to a dip of 5% to 10% after a peak as a pullback.
The next term is "correction," which is used when markets drop 10% to 20% after a peak. Then there is a "bear market," where the drop is 20% or more since the last peak.
When prices are trending lower, it's easy to second-guess yourself. But over the years, we've found that doesn't help.
We align investment strategies with your goals, time horizon, and risk tolerance. We build your portfolio anticipating that there will be good times and bad.
If you find yourself thinking "this time, it's different," please reach out as soon as possible. It's important that you feel comfortable with your investing, and we'd be happy to talk with you.
*The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
Cornerstone Wealth Management
486 NW 2nd Avenue
Canby, OR 97013
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.