During market volatility when one is faced with unexpected financial outcomes it can be stressful to keep one's financial plans on track. This article will provides the reader with five things one can focus on to help them keep their financial house in order.
You Should Ride the Waves, When the Surf Is Up
When the market takes a down turn one can turn such into an opportunity. During these low market conditions many stocks of very solid companies are dipped. One can therefore make a move into the market and grab these stocks. Essentially, one is getting more stock for less money.
As an example, if one puts down $500 into a stock fund for one's 401(k) every month and the market is dipped on one's payday, this would be good as one receives more shares for their money than if the markets were up. One could view such market conditions as everything really being on sale.
Buy Low, Sell High
Most of us inherently want to invest in winners. Nobody wants to be part of loosing company. However, the reality of investing is that one has to look at over all trends. For example if real estate and bonds have been going up and up one might have to decide to get off of this track and back into some other stocks which have potential for growth.
Is real estate going to go up higher? It's possible but it's highly unlikely that you're going to see a strong surge that's similar to what's happened in the past. Real estate is going to level off and stocks are in a very strong position for recovery. When it comes to the long term the stocks really provide you as a long term investment strategy.
Don't Run For Cover
If you're going to go through a tornado or a hurricane then that is the time to hunker down. When it comes to long term investments it's not such a good idea. If you sell you're going to miss the party later on. Stocks are something that tends to go up really rapidly when it comes to the beginning of a market recovery.
Generally, you want to already be part of the Bull markets rather than having avoided the Bear market. Back in 92-01 the S&P 500 had a return of 175%. If you had gotten out of this market during the bad times all of this opportunity this 'free money' would have been missed out on. Don't throw in your chips when the markets turn, this isn't for investors.
Stash Your Cash
When managing your over all portfolio you don't want to keep your self cash poor and have to sell off assets to fund your basic needs. A Bear market will rarely keep growing for more than 3 years and so you should keep about the same about of cash liquid. Therefore you can have some cash to renovate your home, put a deposit down on one and send your children to school then you should stay in the liquid money market (CDs).
Stop, Look, Listen
You really need to try to stop worrying. Look at the position that you're at now and then listen to the advice of a trusted financial adviser. Creating a strong financial plan is just what the doctor ordered and the promise to get yourself back on track and begin moving toward your future when you come to the times that you feel you've lost your way.
You Should Ride the Waves, When the Surf Is Up
When the market takes a down turn one can turn such into an opportunity. During these low market conditions many stocks of very solid companies are dipped. One can therefore make a move into the market and grab these stocks. Essentially, one is getting more stock for less money.
As an example, if one puts down $500 into a stock fund for one's 401(k) every month and the market is dipped on one's payday, this would be good as one receives more shares for their money than if the markets were up. One could view such market conditions as everything really being on sale.
Buy Low, Sell High
Most of us inherently want to invest in winners. Nobody wants to be part of loosing company. However, the reality of investing is that one has to look at over all trends. For example if real estate and bonds have been going up and up one might have to decide to get off of this track and back into some other stocks which have potential for growth.
Is real estate going to go up higher? It's possible but it's highly unlikely that you're going to see a strong surge that's similar to what's happened in the past. Real estate is going to level off and stocks are in a very strong position for recovery. When it comes to the long term the stocks really provide you as a long term investment strategy.
Don't Run For Cover
If you're going to go through a tornado or a hurricane then that is the time to hunker down. When it comes to long term investments it's not such a good idea. If you sell you're going to miss the party later on. Stocks are something that tends to go up really rapidly when it comes to the beginning of a market recovery.
Generally, you want to already be part of the Bull markets rather than having avoided the Bear market. Back in 92-01 the S&P 500 had a return of 175%. If you had gotten out of this market during the bad times all of this opportunity this 'free money' would have been missed out on. Don't throw in your chips when the markets turn, this isn't for investors.
Stash Your Cash
When managing your over all portfolio you don't want to keep your self cash poor and have to sell off assets to fund your basic needs. A Bear market will rarely keep growing for more than 3 years and so you should keep about the same about of cash liquid. Therefore you can have some cash to renovate your home, put a deposit down on one and send your children to school then you should stay in the liquid money market (CDs).
Stop, Look, Listen
You really need to try to stop worrying. Look at the position that you're at now and then listen to the advice of a trusted financial adviser. Creating a strong financial plan is just what the doctor ordered and the promise to get yourself back on track and begin moving toward your future when you come to the times that you feel you've lost your way.
About the Author:
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