Dos and Don’ts

What you do now can hurt you

With stock markets worldwide hit hard by recent market volatility, it’s easy to forget common investment wisdom. As a reminder, here are some general dos and don’ts to weather this market uncertainty.

Do

• Be mindful about what you see, hear and read. Remember, not everyone with an opinion is an expert, and even the financial channels have gotten it wrong recently.

• Maintain your investment discipline. A down market is generally a good time to buy, as your regular investments will acquire more shares. While past performance is no guarantee of the future, the market has historically rewarded those with long-term investment planning who don’t jump in and out of the market when things get rough.

• Prepare for emergencies. Unemployment is up and credit is hard to come by. Consider setting aside funds for emergencies — a lost job, broken transmission or an appliance that bites the dust. While many financial professionals will suggest you set aside an amount equal to three to six months of expenses, even if you can’t achieve that now, start setting aside the money you can.

• Diversify. Don’t place all your eggs in one basket, or one type of fund. GuideStone makes available a well-diversified portfolio that adjusts as you approach retirement and move beyond that date with the GuideStone Funds MyDestination Funds line-up of funds®**.

• Remain rational — we’ve seen volatile markets in the past. GuideStone’s 90-year heritage has weathered other tumultuous times in the past, and likely will weather more in the future.

Don’t

• Time the market. No one knows where the peak or the trough is. If you sell now, you risk selling low, and could risk buying high later.

• Spend too much time watching the news. We’re just coming out of an election where the economy was big news. Many reporters — especially those in local TV markets and newspapers — lack financial backgrounds (degrees, professional designations or training). They are capable of covering the impact of the economy, but may not be adept at understanding complex economic issues, let alone explaining them.

  Journalists generally try hard to get it right, but sometimes fall short. Remember, theirs is a ratings-driven business, and we are more likely to watch when the sky appears to be falling. Take their reports with a grain of salt and do your own research. We may be in for a rough patch economically, or we may be at the end of one. Regardless, a 24-hour diet of cable news isn’t going to fix anything, and may cost you sleepless nights and damage your health.

Bottom line: Stay informed, spend some time with your family and nurture your faith. And realize that — like any crisis — this is temporary.

**Date Target Funds attempt to achieve their objectives by investing in the GuideStone Select Funds. By investing in these fund-of-funds, you will incur the expenses of the Date Target Funds in addition to those of the underlying funds. You may invest in the Select Funds directly. Date Target Funds are also subject to the risks of the underlying funds they hold.