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What investing strategy should I use?

At Stash, we promote something we call The Stash Way. These three principles can help get you started and make you a more confident investor over the long-term.

Invest regularly

You don’t need to have a lot of money to start investing. You just need to start and keep at it, adding little by little, consistently. Using Auto-Stash to invest and save regularly can take the pain out of reaching your financial goals, both long and short-term. It’s a positive money habit that can keep you on track.

Investing regularly is a key part of navigating market volatility. By automating small amounts of money regularly over time, adding more as you get comfortable, you can capture the highs of the market and buy more of your investments when prices are lower.

Stay diversified

At Stash, we like to tell our customers not to put all their eggs in one basket. Having a mix of stocks and funds in different sectors, bonds, and other investments like commodities can help you balance out your risk. That’s known as diversification. On Stash, you can always invest in funds, which are like baskets of stocks, bonds and/or commodities, to get easy diversification.

A diversified portfolio mix that’s tailored to your risk, can help see you through good times and bad times in the market. If your tech investments get hit, your healthcare investments may not. If American stocks are in the doldrums, international stocks may be on the rise. Bonds don’t correlate to stocks, so having them in your portfolio can keep you balanced.

Think long-term

You don’t need to try and predict whether the market goes up or down to invest. That’s called timing the market. A better strategy? Buy quality investments and hold on to them through the highs and the lows of the market. Don’t panic if stocks go down. Markets are volatile, they don’t just keep going up (or down).

Think about your time horizon. The sooner you start, the more time you have to weather market storms. Don’t look at the day-to-day swings. Instead, look at the market over a 10 or 20 year period. You’ll see that in general, markets tend to go up over time. Stay the course, keep Stashing.

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