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This is the nature of stock investing.

Days like yesterday happen for a reason, however equity investors must be ready to accept short-term uncertainty in order to capture long-term performance. Like all investors I hate watching my assets decline, but I have learned to accept it is a part of the process.The fundamental reason why investors receive a return when investing is that they take on risk. There are many ways to reduce risk, but this also reduces returns. This is the nature of investing. For example fixed income assets offer a lower expected return than equity assets (stocks) over the long-term. However, this lower return comes with lower risk, which is manifested on days like today. (High grade bonds went up today.)Investors who flee the stock market for the safety of cash, after a day like today, may experience temporary relief from market volatility. But after leaving stocks, their anxiety may shift to concern over missing a stock market rebound while sitting in cash.An investor's job is not to predict bull and bear markets, but to be positioned to capture positive performance when it occurs. This is best achieved by holding a broadly diversified portfolio that reflects one's risk tolerance and investment time horizon.-Gregory Skidmore is the President and Chief Investment Officer of Belpointe Asset Management. Belpointe Asset Management is a wealth management firm located on 125 Greenwich Ave, Greenwich, CT 06830.

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