Keep steady during these uncertain times.
The outbreak of the coronavirus has hit the stock market hard, resulting in the first bear market in over a decade. In times like these, it can be easy to panic. Instead, try your best to take a deep breath. Now, consider the following before you do anything with your investments.
Know the reasons.
You’re probably seeing a lot of experts advising that it’s time to make moves in the market. However, as The New York Times reports, remember why they’re doing that. Many of them are professional investors trying to time the market and buy during times exactly like this. Your goals are not the same as theirs. You want your investments to grow long term, steadily outpacing inflation. The short-term moves the pros are advising typically don’t have anything to do with what you’re doing.
The end is far off.
If you’re close to retirement or buying a home within the next two years, you probably don’t want to have much invested (what you don’t want is to lose your down payment or the money you need to live on in the short term). If not, you’re in this for the long haul. The market will rebound and you’ll likely regret selling investments down the road.
Think it through.
Don’t take action without giving yourself plenty of time to think things through. We understand that it’s hard right now. There’s a sense of panic and dread in the air that is probably worrying you. Try to breathe and think. You might want to talk to a friend who is experienced in the market. Even better, if you have a financial advisor, make time for a conversation. If you need to, shift some money to cash to alleviate some anxiety. However, any major moves are probably not a good idea in the long term.
*Image courtesy of Savvy Money, Inc.