Stock Market Selloff: What’s Causing All the Volatility, and Should You Buy the Dip?

Charles Sachs, chief investment officer at Kaufman Rossin Wealth, was interviewed by Money for an article that details what consumers need to understand about the stock market’s swings in the last week in regard to their portfolio. His commentary provides insights on how the market’s volatility is a sign of how well it has been doing recently , and why it’s more important to focus on the long term for returns.

Article Excerpt:  “But the turbulence was somewhat also expected given how well stocks have been doing recently, says Charles Sachs, chief investment officer at Kaufman Rossin Wealth. During the early stages of the pandemic, the stock market hit record high after record high, encouraging new investors — many of them young — to pour their money into stocks (and even riskier assets, like crypto). While the stock market kept skyrocketing, experts warned that prices couldn’t go up forever.

“Markets don’t just go one direction,” Sachs says. “You need to be embracing volatility when you’re investing in the markets.”

Remember: The average stock market return is around 10% annually in the U.S. But you don’t get those returns “like clockwork,” Sachs says.

In other words, there are up years and there are down years, and if you have a well-diversified portfolio and a strong, long-term investing plan, don’t panic. Stick to the plan.”

“If you’re in it for the long term, you should expect some nice returns,” Sachs says. “

To read the full article, please visit Money.

Charles Sachs, CFA, CFP®, is a Chief Investment Officer at Kaufman Rossin Wealth, LLC, a Registered Investment Adviser.