Four Tips to Help You Navigate Volatile Markets
The market volatility due to COVID-19 has sparked a lot of fear and uncertainty, not only over how to keep ourselves and our loved ones healthy, but also in regard to our investment and retirement accounts. It’s understandable to be concerned about your money. However, there are a few things to be aware of that may help you keep perspective and stay calm until the storm passes — and we remain confident that it will.
1) Intra-year market declines do not mean you won’t see positive annual returns. Remember to think long-term, not just about this week, this month or this quarter.
2) Stay invested. Avoid the temptation to “time the markets” by selling stocks when the market is down and getting back into the markets later. This is an easy way to miss the best days. For example, according to the JP Morgan Asset Management Guide, the best day of 2015 was August 26, only two days after the worst day, August 24.
3) Take news with a grain of salt. Reporters and media outlets are not investment experts, and part of their job is to increase viewership with alarming or attention-getting headlines and reports. Sure, it’s important to know what’s going on, but tune out when it gets too unnerving.
4) Seek the counsel of a qualified investment advisor. He or she can review your current portfolio to ensure diversification of your assets. This is just one way to help mitigate risk from financial loss.
If you need guidance to help you navigate market volatility, we encourage you to speak to one of our reputable advisors. Complimentary consultations are available by phone or web. Until further notice, in-person appointments are not available. Email contact@nwfllc.com or complete our consultation request form to request your appointment.
