Staying the Course Amid Volatility

By PB Bachman
jack bogle
Action in the U.S. stock market on Wednesday, January 20, 2016 delivered some of the highest volatility in recent memory. Wednesday’s market activity was particularly momentous, even among an otherwise-volatile start to the year. The Dow Jones Industrial Average traded down nearly 300 points within the first ten minutes of trading on Wednesday, and it slipped to a low of 566 points by the early afternoon. Then the index massively reversed course in the remainder of the afternoon, closing down 249 points for the day.

Volatility, as witnessed on Wednesday, can make us all feel anxious. However, it is important to keep in mind that staying true to one’s investment plan – even when the market may feel like a roller coaster – is the best course of action for long term rewards. Investing legend Jack Bogle, founder of The Vanguard Group and respected author, provided timely input on this topic during an interview on CNBC on Wednesday.

When asked what investors should do in this poor market environment, Bogle said, “Just stay the course. Don’t do something, just stand there. This is speculation that we’re seeing out there, and you can’t respond to it.” Regarding the importance of long term vision in one’s portfolio, Bogle also remarked, “If you’re investing in a retirement plan, as tens of millions of people are, don’t stop investing when the market goes down. The prices are 10% better than they were. Keep investing.” Advice like this from a wise investor is good to consider as we stay the course.

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