How do I handle market downturns?
We understand that the recent market fluctuations may be causing concern. It's natural to feel uneasy during such times. But it's important to remember that market corrections are a normal part of the economic cycle. Historically, markets have demonstrated resilience, often rebounding and continuing their upward trajectory over the long term.
For instance, during the 2008 financial crisis, global stock markets declined by over 50%. However, investors who maintained their regular investment contributions saw their portfolios fully recover and grow substantially in the following decade. After the March 2020 COVID-19 market crash, major indices recovered their losses within just 6 months. This underscores the importance of staying invested and adhering to a consistent investment strategy, even during turbulent times.
At Curvo, we advocate for a disciplined, long-term investment approach. Here are strategies that can help you navigate market volatility:
Continue regular investments. By investing regularly through a monthly saving plan, you implement "euro-cost averaging," purchasing more shares when prices are low and fewer when prices are high, potentially lowering your average cost per share over time.
Avoid timing the market. Research consistently shows that attempting to time market exits and entries leads to worse outcomes for most investors.
Review, but don't react. Avoid making emotional decisions during market downturns.
During volatile periods, consider these approaches to manage your investment-related stress:
Focus on your long-term goals rather than short-term fluctuations
Limit how often you check your portfolio during highly volatile periods. Checking less means you experience the volatility less.
Remember that paper losses only become real when investments are sold
We are committed to supporting you through all market conditions. Our investment philosophy is built on evidence-based principles that have withstood numerous market cycles. We believe that disciplined, long-term investing is the most reliable path to financial success, regardless of short-term market movements.
If you have any questions, please don't hesitate to reach out. You can click the "Chat with us" button below, or else email hello@curvo.eu.
Historical perspective
For instance, during the 2008 financial crisis, global stock markets declined by over 50%. However, investors who maintained their regular investment contributions saw their portfolios fully recover and grow substantially in the following decade. After the March 2020 COVID-19 market crash, major indices recovered their losses within just 6 months. This underscores the importance of staying invested and adhering to a consistent investment strategy, even during turbulent times.
Practical strategies
At Curvo, we advocate for a disciplined, long-term investment approach. Here are strategies that can help you navigate market volatility:
Continue regular investments. By investing regularly through a monthly saving plan, you implement "euro-cost averaging," purchasing more shares when prices are low and fewer when prices are high, potentially lowering your average cost per share over time.
Avoid timing the market. Research consistently shows that attempting to time market exits and entries leads to worse outcomes for most investors.
Review, but don't react. Avoid making emotional decisions during market downturns.
Managing your anxiety
During volatile periods, consider these approaches to manage your investment-related stress:
Focus on your long-term goals rather than short-term fluctuations
Limit how often you check your portfolio during highly volatile periods. Checking less means you experience the volatility less.
Remember that paper losses only become real when investments are sold
We are committed to supporting you through all market conditions. Our investment philosophy is built on evidence-based principles that have withstood numerous market cycles. We believe that disciplined, long-term investing is the most reliable path to financial success, regardless of short-term market movements.
If you have any questions, please don't hesitate to reach out. You can click the "Chat with us" button below, or else email hello@curvo.eu.
Updated on: 11/03/2025
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