HOW SHOULD YOU RESPOND TO A BEAR MARKET ?

So far , 2022 has not been a good year for investors . In fact , we ’ ve moved into bear market territory . What should you know about bear markets ? And how should you respond ?

To begin with , a bear market occurs when a stock market index , such as the S & P 500 , falls at least 20 % from its most recent high point . You might think this type of drop is rare , but that ’ s not actually the case . Historically , bear markets have occurred every few years and are a normal feature of the investment landscape . We experienced a bear market fairly recently , from mid-February 2020 through late March of that same year .

What causes bear markets ? Each one is different , but the current one is largely the result of several factors , including high inflation , rising interest rates , the war in Ukraine and global supply chain problems .

When will the financial markets again start moving in a positive direction ? No one can say for sure , but in any case , it ’ s not really a good idea to make investment decisions based on what may happen next in the financial markets . Instead , consider these moves :

• Be patient . It can be challenging to look at your investment statements during these days . But you ’ ll help yourself by taking a long-term view . Consider this : From March 2009 until the end of 2021 , the Dow Jones Industrial Average gained more than 460 %. So , if you ’ ve been investing for a while , compare where you are now to where you were 10 or 12 years ago .

You ’ ve probably made pretty good progress over this time – and 10 years from now , the current downturn may not look like such a big event , either .

• Review your risk tolerance . If you ’ re having a hard time coping with investment losses – even if they ’ re just “ paper losses ” for now – you may want to review your tolerance for risk and see if it ’ s still the same as it was when you began investing . Even without a bear market , people ’ s risk tolerance can change , especially as they approach retirement .

• Review your goals . A bear market is not meaningless , but by itself , it shouldn ’ t cause you to change your long-term goals . And if your goals haven ’ t changed , neither should your investment strategy .

• Look for buying opportunities . During a down market , you can find quality investments at attractive prices . So , you could take this opportunity to fill gaps in your portfolio or add shares of investments that you already own and that you believe have good prospects for growth .

• Get some help . When trying to navigate a lengthy market downturn , it can be useful to get some support and guidance . Consider this : Among investors who work with a financial advisor , 84 % said that doing so gave them a greater sense of comfort about their finances during the COVID-19 pandemic , according to a survey conducted in 2020 by Age Wave and Edward Jones . And getting professional help may provide the same type of reassurance during the current market turmoil .

A bear market is never enjoyable . But taking the long view and making moves appropriate for your needs can help you get through this period and look ahead to better days .

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor .

Edward Jones , Member SIPC

Matt Dudkowski has been a financial advisor with Edward Jones since 2002 , serving individual investors in the Pittsburgh area from his Shaler Township office . In January of 2015 , Dudkowski accepted an invitation to become a limited partner with the firm .

Since joining Edward Jones , Dudkowski has obtained the professional designation of AAMS ®. Prior to Edward Jones , Dudkowski , as a CPA , worked at the H . J . Heinz Company , and at Ernst & Young LLP . He currently serves on the board of directors for Keystone Wellness Programs , a local nonprofit organization .

A native of Butler County and a graduate of the University of Notre Dame , Dudkowski resides in Gibsonia with his wife , two sons and daughter .

PINE-RICHLAND ❘ FALL 2022 1

IN Pine-Richland Fall 2022 | Page 3

FINANCIAL FOCUS

HOW SHOULD YOU RESPOND TO A BEAR MARKET ?

So far , 2022 has not been a good year for investors . In fact , we ’ ve moved into bear market territory . What should you know about bear markets ? And how should you respond ?