We’ve written before about topics like market volatility, but sometimes it is helpful to have a list of “go-to” rules to remember when the markets experience a bit of downturn.
To get your mind back on what matters most, here are a few things to remember to help you easily ride the wave of volatility and hopefully come out of it better off.
Now may be a good time for a portfolio check-up. Rather than worrying about your investments and wondering what will happen, it might be better to take a moment to call up the LexION Capital team and schedule a portfolio checkup. Portfolio weight may shift over time, so it’s good to get a checkup to see if your investments are as diversified as you would like them to be, and whether your portfolio mix is aligned with your overall goals and risk tolerance.
Tune out the noise. We can’t stress this enough, and in the era of the 24 hour news cycle it can be hard to ignore all that chatter, but it’s really the best thing you can do. Tuning out the noise means thinking rationally instead of listening to your emotions, and that may mean tuning out the 24 hour news cycle. While reporters rely on real information, their job is to report on the short term here and now, not on the long-term outlook of your investments.
Don’t listen to your gut. The markets don’t become volatile, they are always volatile. Unfortunately, some periods of volatility can be more difficult than others. That being said, the best way to deal with a turbulent market is by having a long-term investment strategy and a diversified portfolio. When your gut leads you to doubt, just remember your long-term goal and consider that the choppy waves are just part of the ride.
