After reading our last post titled “End of Year Thoughts,” the elements touched on may determine the direction of the markets. It is not just the strength (or weakness) of the economy that drives investors’ emotions. Now there are other elements in play such as new political policy initiatives. This element, although not new, is having more of an impact on market volatility.
The volatility may be an ongoing frustration leaving you feeling ready to cash out of all your investments. Or perhaps you already cashed out and are waiting on the sidelines for the right time to re-enter the market. Such uncertainty is understandable; investors across the board have felt the pain of this economy.
What you can do?
- Remember that it’s natural to feel worried at times.
Even people who are aware of the market’s historical cycles may feel torn between their emotions and knowledge.
- Follow your head rather than your gut.
Maintaining a regular investing strategy means you have the opportunity to take advantage of market declines like this one by purchasing more shares for less money. Keep in mind that regular investing does not ensure a profit or protect against loss. You should consider your willingness to keep investing when share prices are declining.
- Talk to your Financial Advisor.
Before making any decisions, make sure your emotions are in check and talk to your Financial Advisor. Take steps to ensure that your long-term investment strategy stays on track.
What strategies are you using to mitigate the uncertainty in your portfolio?