4 Tips to Stay the Course through Market Volatility
In times of uncertainty, having a solid investment plan is key to successfully navigating a choppy market. It's useful to have several strategies in place that prepare you both financially and psychologically to handle market volatility. Here are four ways to keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals.
1. Have a game plan
A solid asset allocation is the basis of sound investing. Having predetermined guidelines that recognize the potential for turbulent times can help prevent emotion from dictating your decisions.
2. Know what you own and why you own it
When the market shifts unexpectedly, knowing why you originally made a specific investment can help you evaluate whether your reasons still hold, regardless of what the overall market is doing.
3. Tell yourself that this too shall pass
The financial markets are historically cyclical — downturns follow highs and rebounds follow lows. Remember, wildly volatile markets can magnify the impact of making a wrong decision, so avoid making any emotional decisions when the market moves unexpectedly.
4. Look in the rear-view mirror
When you're investing long term, it helps to take a look back and see how far you've come. If your portfolio is down this year, it can be easy to forget any progress you may have already made over the years. Remember that having an investing strategy is only half the battle; the other half is being able to stick to it.
No matter what the market does, having a solid investment strategy will help you stay the course. If you don’t have an investing strategy in place or think your plan may be falling off track, working with a financial advisor can help. For a no-cost, no-obligation initial consultation, contact 1-888-294-0202.
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This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.
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Ameriprise Financial cannot guarantee future financial results.
Asset allocation does not assure a profit or protect against loss.
The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.