In Times of Stress, Remember to Consider the Big Picture

VOLATILITY AND PERIODIC CORRECTIONS ARE A FACT OF LIFE IN FINANCIAL MARKETS

You’ve worked with your investment advisor to devise an investment approach that meets your needs. So resist the urge to drastically change to your investment plans in reaction to market moves. Instead, stay focused on your goals and the value of investing in a diversified portfolio over time.

THE BOTTOM LINE…

Making shifts to your portfolio in hopes of avoiding a loss or finding a gain doesn’t often work long term. In times of stress, remember to consider the big picture.

Sources: Vanguard calculations, using data from Standard & Poor’s, Bloomberg, and Thomson Reuters Datastream. Notes: Growth of $100 data begin at January 30, 1960. U.S. stocks are represented by the S&P 500 Index from January 30, 1960, to 1974; the Dow Jones Wilshire 5000 Index from 1975 to April 22, 2005; and the MSCI US Broad Market Index thereafter. U.S. bonds are represented by the S&P High Grade Corporate Index from January 30, 1960 to 1968; the Citigroup High Grade Index from 1969 to 1972; the Lehman Brothers U.S. Long Credit AA Index from 1973 to 1975; and the Bloomberg Barclays U.S. Aggregate Bond Index thereafter. Disclaimers: Past performance is no guarantee of future results; the performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index; all investing is subject to risk, including the possible loss of the money you invest; bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments.

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