Between COVID-19, civil unrest and the up-coming presidential election, it's safe to say market volatility is going to be a common theme for the remainder of 2020. How should an investor handle these times? Here are four things to remember as you navigate through this market turbulence.
Breathe and relax. Sometimes the best decision is no decision at all. Making significant portfolio changes during times of emotional stress oftentimes is the worst time to do it. You could potentially threaten your long-term financial goals by getting caught-up in short term stress and anxiety.
Separate Fact from Opinion
News and social media offers no shortage of financial and economic opinions to us. However, it’s important to focus on the facts when reviewing market and economic headlines. The markets don’t go up or down for one or two reasons only. Try to look beyond the scary headlines to get a better pulse of the agendas of those delivering the message.
Remember Your Long-term “Why”
If you are basing your investing decisions on long periods of time, it's easier to make the correct decisions. Besides a long-term focus, investors should always know their needs for their money. If you need to use some of your investment assets in the short term for a major purchase or living expenses, it’s wise to re-assess where those monies are located and into what they’re invested.
Discuss Your Fears and Concerns
During this time of high anxiety and uncertainty, investors should actively engage their retirement professional to gather their valued perspectives. Don't underestimate the importance of talking through feelings and concerns regarding your life and investments. A retirement professional can assist in re-examining or reviewing your long-term financial goals, and the plan to pursue them.
If you have questions, fears or concerns regarding market volatility and your portfolio, please, give us a call to schedule a no-cost, no-obligation meeting at 320.222.4236.