The market can go on periodic roller coaster rides but it is important to not make hasty decisions. Being strategic both financially and psychologically can help. Here are 11 tips to keep your sanity in a crazy market:
1. Have a plan
Long-term or short-term you should have a plan to help meet your goals. Our team at Standard Financial Services can help you make the right plan. Click here to learn more.
2. Know what you own and why
Understanding what makes up your portfolio and why will help when the market shifts.
3. Remember that everything’s relative
A diversified portfolio can help soften the blow of losses on the stock market. If part of your portfolio falters it is likely another part will not be affected.
4. Tell yourself that this too shall pass
Like most things in life, the financial markets are historically cyclical. If you feel like you missed an opportunity to buy or sell, you may well get an opportunity at some point.
5. Be willing to learn from your mistakes
Smart investors are produced by the rough patches, not bull markets. No one can be right all the time, but the best strategy is to learn from the experience and apply it to the future.
6. Consider playing defense
During volatile times it may be useful to implement a defensive strategy. Consumer staples and utilities, while not immune may help keep your portfolio immune.
7. Stay on course by continuing to save
If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging.
8. Use cash to help manage your mindset
Cash can enhance your ability to make thoughtful decisions instead of impulsive ones. Having a cash cushion paired with a disciplined investing strategy can change your perception on the volatile market.
9. Remember your roadmap
Diversification in your portfolio can be crucial when some investments can offset poor performance by others. Make sure your asset allocation is appropriate before making drastic changes.
10. Look in the rear-view mirror
Sometimes when investing long-term it is important to look back and see how far you have come. If patience has helped you build a nest egg, it just might be useful now, too.
11. Take it easy
Taking gradual steps is one way to spread your risk over time as well as over a variety of asset classes. As with most things in life it is important to not rush into anything.
Remember to keep your cool and remain calm. Our team at Standard Financial Services is cool as a cucumber. Click here to find a list of our financial advisors.
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