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While its normal to feel worried, financial advisors say not to panic aboutyour moneyjust yet.
Dont Panic
Dont panic!
Im an Investor:
Downturns are common.
Even if stocks decline 20% from their peak, its still normal and not a reason to panic.
Instead, make a run at disassociate yourself from market emotions and create a rational plan, Zacks said.
Reevaluate your financial goals, risk appetite and timeline for when you will need your money.
Then slowly take action to realign your portfolio with those goals.
But ignoring it isnt a good idea either.
Ignoring market gyrations risks even larger losses, Zacks said.
Instead, he suggests evaluating changes to your portfolio more often and educating yourself oncurrent market conditions and valuations.
Dont Neglect Diversification
In other words, dont put all your eggs in one basket.
Severinghaus recommends diversifying your investments.
This way, if one investment goes down, others might still be alright, he explained.
A well-diversified portfolio has more strength and can handle market troubles better.
Dont Double Down
One common piece of advice is to buy low and sell high.
Some stocks have come down, but Zacks says you shouldnt double down.
Buying more of a stock that is falling rapidly can be a recipe for disaster, claimed Zacks.
He recommends reducing your exposure to levels that are more appropriate to current volatility.
Only risk what you’re able to afford to lose.
These periods are not the time to use margin leverage.
Dont Forget Your Goals
Knee-jerk reactions can damage your long-term financial goals.
But remember your goals, said Claudia Valladares, director of client relations at11 Financial.
But if youre nearing retirement, you may need to make some slight adjustments.
But if youre investing for the long haul, consider using this dip to your advantage by dollar-cost averaging.
Stay calm, and stick to your plan itll pay off in the end!
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