KSL INVESTIGATES

Why investors should stay the course during turbulent markets

Jun 1, 2022, 7:30 PM | Updated: Jun 19, 2022, 9:54 pm

SALT LAKE CITY — After seven straight weeks of losses for the S&P 500 and Nasdaq, and eight for the Dow Jones Industrial Average, all three rallied last week. Now, they’re sliding again.

That Wall Street rollercoaster has many people frightened about their investments and retirements.

Current events headlines are also rough on investors. Between falling markets, rising inflation, the war in Eastern Europe, and the resurfacing of COVID-19, again, many people have pulled out of the markets.

During turbulent times, the stock market resembles the ride Cannibal at Lagoon. There are drops. We are talking big, memorable, stomach-churning drops. But if you look at the data, turbulent times, like right now, also yield some of the biggest ups.

In fact, there’s an old trope in the investment world that says, “if an investor missed the 10 best days in a decade, they would slash their earnings to almost nothing.”

While that rings true, the flip side can certainly be attractive. Imagine if you somehow managed to time the market and miss the ten worst days. You would likely be rich!

Do not be tempted, warned LendingTree’s, Matt Schulz.

“It just almost never works,” he said.

Schulz, and most investment advisors, say trying to time your investing to the ups and downs of stock markets is a “fool’s errand.”

And according to data compiled by Lending Tree and shared with the KSL Investigators, many investors agree. Some 38% of investors told Magnify Money/Lending Tree they sold stocks last year due to a current event. Forty percent of them regretted it.

Schulz, who studies market trends, said panic selling is understandable.

“It can make sense in your head to say, ‘OK, I’m going to cut my losses,’” he said.

But shrewd investors do not try to sell before a drop. And better still, they try to buy after a drop. And then let it ride back up for as long as they can.

“You can go in and buy more with the thought that that’s eventually going to be more valuable in the future,” Schulz explained.

Younger investors have more time to ride out market slumps, so Schulz said they should stay invested. For those approaching retirement, generally, that is a time to invest more into lower-risk, more stable stuff like bonds. But that does not always apply to every situation, so Schulz advises seeking professional financial advice.

KSL 5 TV Live

Top Stories

KSL Investigates

FILE...
Matt Gephardt & Sloan Schrage

Get Gephardt: How cybercriminals use social engineering to get us to hand over our sensitive info

You can have the strongest, most secure password in the history of cybersecurity, but the bad guys know there is one weakness they can use to hack into your system - you!
1 day ago
Delric Ellington and Kael Ellington talk about a stray bullet that entered their Salt Lake City hom...
Annie Knox and Daniella Rivera, KSL TV

Amid increase in youth shooting deaths, Utah pediatricians push for tougher gun laws

The number of Utah children and teens killed by gunfire reached a record high in 2020, in part because of a spike in homicides. Two Utah pediatricians are calling on the state to pass what they see as solutions to the troubling trend.
4 days ago
Albee Bostrom and Sissy McDade turned their love of thrift store shopping into a business: Thrift H...
Matt Gephardt

Gephardt Busts Inflation: Second-hand shopping, selling surge as Utahns try to beat rising prices

Data shared with the KSL investigators shows Utahns are trying to bring in more money and reduce spending as they try to bust inflation.
4 days ago
Bry Hansen visits his son's grave in South Jordan. (Tanner Siegworth/KSL TV)...
Annie Knox and Daniella Rivera, KSL TV

The number of Utah kids and teens dying by gunfire hit a record high in 2020

The state hit a devastating milestone in 2020, recording the highest-ever number of shooting deaths among Utahns 18 and younger.
4 days ago
...
Matt Gephardt & Sloan Schrage

Get Gephardt: What can you do if you pay someone to do work but they disappear with your money?

Imagine paying a deposit only to have them take your money and ghost you.
6 days ago
Photo illustration (Photo by Matt Cardy/Getty Images)...
Matt Gephardt

Get Gephardt: Your credit card can up your interest rate without telling you

If your credit card company raises your interest rate even just a little bit, it could have a significant impact on how long it takes you to get out of debt. A relatively new law means your credit card company can do just that and they do not even have to give you the heads up.
7 days ago

Sponsored Articles

Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Ask these questions before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Cloud storage technology with 3d rendering drawer with files in cloud...
PC Laptops

How backing up your computer can help you relieve stress

Don't wait for something bad to happen before backing up your computer. Learn how to protect your data before disaster strikes.
young woman with stickers on laptop computer...
Les Olson

7 ways print marketing materials can boost your business

Custom print marketing materials are a great way to leave an impression on clients or customers. Read for a few ideas to spread the word about your product or company.
young woman throwing clothes to organize a walk in closet...
Lighting Design

How to organize your walk-in closet | 7 easy tips to streamline your storage today

Read our tips to learn how to organize your walk-in closet for more storage space. These seven easy tips can help you get the most out of your space.
Why investors should stay the course during turbulent markets