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Navigating the Markets
Invested for the Long Term
Uncertainty is a constant, and downturns happen frequently. But market setbacks have typically been followed by recoveries.
Downturns may be unsettling, but history shows that stocks have recovered and delivered short-term gains. It can be tempting to try to sell out of stocks to avoid downturns, but it's hard to time it right. If you sell and are still on the sidelines during a recovery, it can be difficult to catch up.
Using historical data, the charts below illustrate the positive outcomes of staying invested long term, along with the opportunities missed by leaving the market for even a short amount of time.
Invest consistently, even in bad times
Some of the best times to buy stocks have been when things seemed the worst. Consistent investing can give you the discipline to buy stocks when they are at their cheapest.
Past performance is no guarantee of future results. Sources: Ibbotson, Factset, FMRCo, Asset Allocation Research Team as of January 1, 2019. U.S. stock market returns represented by total return of S&P 500® Index. It is not possible to invest in an index. First three dates determined by best 5-year market return subsequent to the month shown.
Being on the sidelines has its costs
Missing even a few of the best days in the market can significantly undermine your performance.
Past performance is no guarantee of future results. Source: FMRCo, Asset Allocation Research Team, as of January 1, 2019. The hypothetical example assumes an investment that tracks the returns of the S&P 500® Index and includes dividend reinvestment but does not reflect the impact of taxes, which would lower these figures. There is volatility in the market, and a sale at any point in time could result in a gain or loss. Your own investing experience will differ, including the possibility of loss. You cannot invest directly in an index. The S&P 500® Index, a market capitalization?weighted index of common stocks, is a registered trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity Distributors Corporation.
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Address Volatility with Comprehensive Risk Management
An effective risk management strategy can provide peace of mind.
Given the markets' potential ups and downs, effectively measuring and managing risk is essential. Market changes can impact portfolios differently and having a robust system in place to assess risk can provide you with confidence.
Fidelity's portfolio managers and research analysts perform daily, weekly, monthly, and annual risk management analyses of investment strategies to stay ahead of market fluctuations. This comprehensive risk management program can help to uncover potential risks by utilizing Fidelity's research and proprietary tools.
Ongoing Risk Analysis
Point-in-Time Forecast Risk Factor Exposures
Allows for real-time portfolio risk monitoring and analysis
Proprietary Technology Tools
Real-time access to risk measures and exposures allow for detailed analysis and continuous refinement
Corporate Governance Research
Combines the best of corporate governance and forensic accounting research by providing a thorough review of various companies/issues