What should I do with my money when the market is down?

The market being down can be unnerving, but it is actually quite normal. On average, the S&P 500 has seen a decline of 10% or more every 3 years. Historically, these declines have always been followed by recoveries to new and higher levels. Keeping your investment time frame in mind is important though! Investing in the middle of the tech bubble in 2001, or the housing crisis in 2008, could easily seem daunting. But investors of the time who have continued holding on were likely rewarded – even through the 2022 downturn, the market back then was nearly 70% lower compared to November 2022. So for long-term investors, investing into the S&P 500 during a downturn can be seen as buying stocks at a discount, or on ‘sale’ from their previous higher prices. Of course, the past is never a guarantee of future results, but having historical context can be extremely helpful in navigating through a volatile market!

Remember, you can and should always update any changes to your investment timeframe, goals, or risk tolerance on your investment profile page!

Also remember, you cannot invest directly in an index and past performance is no guarantee of future results.

For more on what you should do when the market is down, see the following Learn articles:

1. How to Invest in a Volatile Market
2. How to Start Investing