Taking recent market volatility in stride
The market has been volatile the last two weeks, and this can be unsettling for investors. You might think, Will the market go back up? Should I take action? We're here to reassure you that volatility is normal and to explain why staying focused on your long-term investment goals may be the best approach.
Historically, the overall market has continued to rise
It’s normal for the stock market to have highs and lows -- it can’t rise without ever falling. But rest assured, when we look at market highs and lows historically, the overall market has always continued to rise over the long haul.
Staying invested through the lows is a good way to ensure you realize gains when the market starts increasing again. In other words, when the market drops, consider your broader investment goals carefully before deciding to withdraw your investment entirely.
Sticking with your investment plan may pay off
If you’re investing for the long term like our MoneyLion Plus members are, we recommend approaching short-term volatility with patience and staying invested. If you withdraw your investment when the market is down, you may miss out on gains when it goes back up, and you may have to pay a higher price just to get back into the same investments you sold.
Our MoneyLion Plus members are on the right track
As a MoneyLion Plus member, you’re invested in a diversified portfolio, which means that your portfolio is managed in a thoughtful way to help minimize the impact of large market swings. And, because you continue to invest $50 or more every month, even during market downturns, you can reap the benefits of “dollar-cost averaging.” Dollar-cost averaging means that if you keep investing the same amount during both down and up markets, you end up paying the average price of an investment over time, which can help you achieve better investment returns in the long run.
Furthermore, staying invested allows you to continue earning compound interest, helping your investment grow bigger over time.
The market has always recovered and gained new ground in the long run
For MoneyLion Plus members, and most other investors, investing is about the long game, so don’t get too caught up in the day-to-day, week-to-week, and month-to-month market cycles. Benefitting from investments typically requires a long-term view and patience. While we recognize that volatility can be stressful, the market has always recovered and gained new ground in the long run.
Ready to start investing in your future? MoneyLion Plus is a first-of-its-kind membership that gives you access to 5.99% APR loans and a managed investment account. Learn more today in the MoneyLion app or at moneylion.com/plus.
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** Not FDIC Insured or Bank Guaranteed * May Lose Value. The guided investment account is subject to risks, including but not limited to the loss of principal. Not bank or FDIC insured. This advertisement should not be construed as a recommendation regarding the suitability of purchasing a particular security or securities in general.*