Top 5 Tips to Help You Stay Strong During Market Volatility
When stock markets start tumbling, daily injections of bad news may sound like it will never end. It can spark anxiety, fuel uncertainty and trigger radical decisions in even the most seasoned investors. But panic isn’t a strategy. It’s important to keep perspective when markets get choppy. Here are five tips to consider when volatility strikes.
1. Don't Abandon
Your Plan
A sudden drop in the market can have dramatically
different implications for someone just starting their career compared to
someone nearing retirement. What’s important is you understand your situation
and your financial plan. Connect with your financial professional to discuss
your investing time frame, goals and strategy to make sure you’re still on
track.
2. Stay Invested
Short-term losses can trigger anxiety, but letting
emotions drive your investment decisions may prove costly. One key to living
with market volatility is focusing on long-term results rather than the daily
bumps along the way. Staying the course can be difficult, but it can also
create opportunities.
3. Stay Diversified
Diversification is a staple of investing. But as
markets change, your portfolio may need to evolve. Times of volatility offer a
great opportunity to reevaluate and possibly rebalance your asset mix.
4. Take an Active
Approach to Risk Management
Don’t be passive in the face of volatile markets.
After all, this is your money, and your future. Being comfortable with your
plan and your portfolio are important, but so is knowing your tolerance for
risk.
5. Talk to Your
Financial Professional
If you’re concerned about market volatility, don’t
hesitate to talk to your financial professional. They can give you professional
advice, go over your financial plan and help you determine any steps you may
need to take.
Cedrus Investments is a global boutique investment
firm founded by Mr. Rani Jarkas more than 19 years
ago. Cedrus Investments, led by Rani Jarkas and headquartered in Hong Kong, can offer you
more insights into how this current environment is shaping risk and return
potential, in the context of your specific situation and goals.
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