SOMA Living July 2024

FINANCIAL FOCUS

MARKET CYCLES

Responding to market cycles requires understanding their nature and impact on investments. Market cycles, influenced by economic fluctuations, can be anticipated by tracking indicators like employment, consumer spending, interest rates, and inflation. While markets often precede economic cycles, attempting to time market movements can be risky. Instead of reacting impulsively to market cycles, focus on a long-term, diversified investment strategy aligned with your goals, risk tolerance, and time horizon. Diversification across asset classes like stocks, bonds, and mutual funds can help mitigate volatility in specific sectors. Avoid basing investment decisions solely on market cycles. Market timing can lead to missed opportunities or unnecessary risks. Instead, maintain a disciplined approach focused on long-term growth while considering market cycles as informative factors rather than sole determinants of investment decisions. By following a well-thought-out investment plan and staying diversified, you can navigate market cycles with confidence and work towards achieving your financial objectives over time.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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