The recent stock market turbulence associated with the coronavirus disease (COVID-19) has been described as a crash, a “meltdown,” and a “disaster.” Even investors who are committed to staying the course can find it hard to overcome the uncertainty of what lies ahead. Plan sponsors can help participants to stay the course by reminding them that short-term market fluctuations, even unprecedented ones, should not affect their long-term investment goals. Learn more about what plan sponsors should do to calm jittery participants and help them stay on course.
How Plan Sponsors Should Address Increased Market Volatility
While the criteria used to determine which market periods qualify as “bull” or “bear” can be somewhat nebulous, make no mistake about it – we are currently enjoying one of the longest bull runs in market history. Most analysts agree that the present bull market celebrated its 9th birthday in March, and there’s little reason to think that stock indices themselves can’t continue to rise over the long-run. In spite of generally positive economic conditions, however, there is reason to suspect the return of a familiar and at times uncomfortable and challenging force in the market: volatility.