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Navigating the Unknown Road Ahead with COVID-19

Navigating the Unknown Road Ahead with COVID-19

April 28, 2020
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The 10-year rally in the stock market came to a screeching halt due to COVID-19 in Q1 2020. We saw investors flee the markets as uncertainty flooded the global economy. Almost all sectors of the economy were affected from the virus outbreak. We saw the S&P 500 Index fall 19.6%, Emerging Markets dropped 23.6%, Corporate High Yields finished more than 12% down, and oil was heavily hit dropping over 65% in the first quarter. Here are three ways investors can handle the unknown road ahead.

{AUDIO} Navigating the Unknown Road Ahead with COVID-19

Make sure you have the three P's

The three P's stand for plan, portfolio and people. A plan should include protocols for the way you are going to react in times of volatility. Having the right plan in place will give you a much better handle on building the right portfolio. And, it's impossible to overemphasize the importance of other people during these times. You need to be connected to other experts in the financial world; not only for information, but to keep reigns on your emotions.

Limit your amount of negative news

There's a difference between being informed and being overwhelmed with the constant bombardment of news and negative headlines. While it's certainly important to have valuable information on the financial world, keep tabs on your emotions and mental well-being. Make sure your desire to be informed isn't causing you to be anxious, lose sleep or make poor decisions.

Be comfortable with any decisions

If you are going to make a financial decision, make sure you are 100% comfortable with it. Remember, while none of us can predict the future, decisions are made with the best information at that time. If all of your options haven't been considered with the appropriate information, you're probably not ready to make a market decision. The job of your retirement professional is to give you advice and information, so you can make decisions you are comfortable making. 

If you need help navigating these turbulent times, please, give us a call at 320.222.4236 or email me directly at tim@taatjesfinancial.com.