Many Wall Street analysts are predicting a volatile market in the second half of 2023. That's because the Federal Reserve is likely to continue raising interest rates, the war in Ukraine is ongoing, and China's economy is slowing. Some analysts are even predicting a recession in the next 6 months.
If these predictions come to pass, that leaves retirees' portfolios in a precarious situation. Yes, “staying the course” is a tried and true strategy, as the average annual rate of return for the stock market over the past 100 years is about 10%. However, it is important to note that this is just an average, and there have been years where the market has returned much more or much less. For example, the stock market returned over 20% in 1995, but it also returned negative 39% in 2008.
