The very nature of this situation increases the uncertainty in the economy and financial markets, which can mean greater volatility over the short term. Vanguard continually takes steps to mitigate risk through formal preparations across our portfolio management, risk management, operations, fund accounting, and fund compliance teams.
We also stand ready to counsel investors on potential market volatility and other dynamics. It’s important to remember that volatility goes in both directions—up as well as down—and that the markets are efficient at processing news. Time in the markets is ultimately better for your portfolio than market-timing.
As we learn more between now and an ultimate resolution, we encourage investors to focus on the things they can control. In uncertain times like these, we believe it’s best to stay the course and remember Vanguard’s fourth principle for successful investing—maintain perspective and long-term discipline.