How to Handle Market Volatility
Follow your planDon’t let your emotions drive your investment decisions as that may prove costly. By staying in-line with your predetermined plan and understanding your investment timeframe it should allow you to get through the volatility. Successful long-term investors know that the market has a powerful upward bias and align themselves accordingly.
Avoid the ‘crisis’As humans, we’re hardwired to feel drops in market value more than equivalent gains. This makes sense with all the media’s coverage when the markets’ value declines. The coverage makes you feel like there is a sense of impending doom. To protect your portfolio, and your sanity, we recommend not watching the market daily. Instead check your portfolios monthly, quarterly or annually. Continue to focus on your plan and your long-term goals.
Seek helpIf you feel anxiety or can’t sleep at night thinking about your portfolio, then you’re probably not doing what’s best for you. Don’t hesitate to talk to a financial planner. They can give you professional advice, go over your financial plan and help you determine any steps you may need to take. Also by talking to a financial planner with fiduciary responsibilities, you will be provided with advice that is best for you; while taking the emotion out of your investing.
For more information on handling market volatility listen to my interview with Clay Moden on 106.5FM WYRK. Also if you need assistance with your own portfolio, call our office to set up an appointment.