Markets will always go up and down, and that is a fact of life that cannot be controlled. With the volatility experienced in today's market, it comes as no surprise that many people are left in an emotional whirlwind, feeling a bit uneasy, and perhaps even hesitant to reenter the markets. However, as a means of survival, it is imperative to leave those emotions aside and reacquaint yourself with some of the basic rules of investing.

Investing 101: In times of volatile market fluctuations, it might be a good idea to review the basic concepts of investing. Diversification and asset allocation may prove to be useful investment strategies to exercise during times of market instability. Diversification can help an investor manage risk and reduce the volatility of an asset's price movements. It is the process of dividing a portfolio among major asset categories such as bonds, stocks or cash. Another good rule of thumb is to avoid investing 100% of your retirement plan in your company stock. Remember, though, no matter how diversified your portfolio is, risk can never be eliminated completely.

Asset Allocation: We have all heard the term, but what exactly is it? It is systematic allocation of the client's investments across asset classes, with the objective of maximizing returns for the amount of risk taken. Asset allocation helps to reduce the risk of market fluctuations, because as some assets' value may go down, others may go up and offset losses. Asset allocation may seem a bit confusing at first, but it really isn't. No one mix of assets is right for everyone all the time. Be sure to work with a financial professional to choose the appropriate mix of investments for your goals and investment needs.

Tips for Surviving Uncertainty: Surviving a down market can be difficult, but there are different strategies that may help to reduce the impact, such as:

• Formulate a well-defined investment plan & stay on course
• When making investment decisions, think long- as opposed to short-term
• Think of a down market as a buying opportunity
• Consider working with a financial advisor

Who Can Assist Me? Are you unsure about the diversification of your portfolio? Now may be a great time to call one of our financial advisors for a portfolio checkup. Together, we can revisit your portfolio and check to see if you are properly diversified. You can also decide if your current portfolio still matches with your long-term financial goals. To learn more about working with a financial advisor, contact Member Services at 336.774.3400 / 800.782.4670.