What are you to do when it comes to your investments and this crazy market? Should you liquidate and sell 100% and just hunker down? Should you get into the fear line and load up on metals? Or is this the time to go shopping for a great stock deal? It is the bottom…right?
What I can assure you is this, with the twenty-four/seven market news machine constantly generating NEWS ALERTS, we all are in a market volatility overload. The ability to make calm, thoughtful, and important financial decisions is getting more complicated. So let me give you a couple of quick thoughts you can focus on to help you through these times:
Do you have an advisor? If not, you should. Talk to him or her and let them know your concerns. Get an understanding of where they are coming from. (Warning, if they say buys and hold, call us!)
- Take a risk tolerance quiz. (We can provide one for you). This will help you understand your risk tolerance level.
- Understand the purpose of your money. Do you want it to grow until some specific point in time? Or is it to generate income now? In 5 years? At age 65? etc. Define the purpose and time frame for your money.
- Understand the investments within your portfolios. (Again, talk to your advisor) Understand what can drive the values up and down.
- Try to have on hand 3 -6 months of income in savings.
- Go take a walk or exercise regularly.
- Watch less financial TV.
- Stay focused on the key legs that make up an economic stool: employment, housing, corporate earnings, politics, and the consumer’s sentiment.
It is our true belief that volatility is here to stay. The “new normal” is understanding this and investing in such a way that you can take advantage of what the market presents.
Strategic and tactical investing are the keys. Always remember for every down turn there is an upturn on the other side.
And finally, SMILE, are you having fun yet?