4. The Markets Can Be a Great Place to Outpace Inflation. Although 2022 was a rough year for inflation, history has shown that, over time, the markets outperform most other investments (opens in new tab), especially inflationary investments. So if inflation keeps going up, generally speaking the market goes up with it to support the underlying investments.
It’s impossible to know when market volatility may end. For many investors, there’s a temptation to do something to mitigate losses.
But what you don’t want to do is act on emotion or try to anticipate the market’s direction. Staying the course takes patience and discipline and can be difficult during times of uncertainty, but as history has shown, it can potentially pay off.
Dan Dunkin contributed to this article.
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