How Can Younger Investors Take Advantage of Volatility?
Christine Benz offers tips and warnings for those with more investing runway.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
Christine Benz: Now let's tackle a question related to younger investors, which is how they can take advantage of the market's recent volatility to actually add to stocks when they're down. I love that question because it hits on a really crucial point. If you're getting close to retirement, as I just talked about, volatility is not your friend because you are seeing your stocks fall shortly before you retire. On the other hand, if you have a very long time horizon to retirement, these periodic bouts of market volatility are actually really advantageous to you, and they're a great to time to think about adding to your investment portfolio.