But don’t be surprised if the current bout of volatility eventually becomes forgotten as another stat in stock market history. Because so far, the market’s moves have been in line with the historical averages.
Not taking action IS taking action! Small adjustments rebalancing is also taking action. Accelerating annual retirement account contributions is taking action.
Reaching a new high doesn’t mean the market will retreat. Stocks are priced to deliver a positive expected return for investors, so reaching record highs regularly is the outcome one would expect.
Inflation is handled with a stock portfolio and for those with concern about the volatility of stocks, inflation hedges like TIPS (treasury inflation protected securities) are smart. (This is what we do.) As always an ongoing long term and short term rebalancing strategy is additive.
