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Understanding Market Volatility
Understanding Market Volatility
If there’s one sure thing about the markets, it’s that they fluctuate. These ups and downs in the day-to-day prices of stocks, bonds and mutual funds are known as volatility. Volatility refers to the risk that the price of a stock, bond or mutual fund will swing widely.
Fund prices experience volatility for a number of reasons, including: economic events such as Federal Reserve changes in interest rates, elections and political unrest abroad and fundamental issues that affect the individual stocks or bonds held by a mutual fund.
While the stock market may be flat, up or down for an individual year, in general, the market has risen over the long term.
By investing regularly and sticking to a disciplined asset allocation plan set up with the help of your Thrivent Financial representative, you’ll be better equipped to ride out periods of market volatility.
Don’t let an emotional reaction to an event or crisis that negatively affects the market derail your carefully crafted investment plan. If you’re worried, discuss your concerns with your Thrivent Financial representative, who can help you decide if any changes in your investment plan are warranted or if you should stick to your original investment plan.
To learn more about successful investing and how Thrivent Investment Management can help you achieve your financial goals, contact a Thrivent Financial representative today.
Investing in a mutual fund involves risks, including the possible loss of principal. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the fund which investors should read and consider carefully before investing.
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Investing in a mutual fund involves risks, including the possible loss of principal. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the fund which investors should read and consider carefully before investing. To obtain a prospectus contact a registered representative or visit www.thrivent.com. |
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