What It Means to Buy Low | American Funds

Client Conversations


What It Means to Buy Low

Feeling emotional about your investments?

Help your clients recognize that when the market rises or falls and their investments decline, the first instinct to cash out may not be the best approach for their long-term financial health.



Don’t Follow the Herd

  • During stock market cycles — ups and downs — investors often respond the wrong way.
  • When equity returns are high, investors tend to flock to the market — when prices are at their highest. Conversely, when equity returns lag, many investors sell their holdings and leave the market — at a time when stock values are most attractive.
  • Both approaches are the opposite of “buy low, sell high,” which should be any long-term investor’s fundamental objective. To do otherwise can jeopardize a long-term investment strategy.


What You Can Do

  • When the market is volatile, it’s natural to worry. Even those who are well aware of the market’s historical cycles may feel torn between their emotions and knowledge.
  • Follow your head, rather than your stomach. By maintaining a regular investing strategy, you have the opportunity to take advantage of market declines by purchasing more shares for less.
  • I can help. Before making any decisions, put your emotions in check and call me so we can discuss the situation. That’s the best way to ensure that your long-term investment strategy stays on track.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.