I hope everyone’s been having a fantastic year and today I’m going to share with you 2 Market Volatility Hot Tips.
During times of stress and uncertainty, Warren Buffett recommends keeping a level head. He recommends that buy-and-hold is still the best strategy.
I 100% agree.
Buffet also said, “If investors are trying to buy and sell stocks, and worry when they go down a little … and think they should maybe sell them when they go up, they’re not going to have very good results.”
Bottomline, as long as your investments are in alignment with your goals… stay away from your investment portfolio.
Here are 2 other tips to help you during market volatility:
1. Rebalance Your Portfolio
If there is a prolonged drop in the market, things get more complicated. Re-balance your portfolio when market volatility picks up. An unbalanced portfolio may mean you are taking on more risk than you think, or too little risk which may not be in alignment with your goals.
2. No Rash Short Term Decisions
When you have investment goals with time horizons of over 10 years, it is most likely best to do NOTHING. Consider the appropriate actions to take based on your financial plan and goals.
And like what American stock investor Peter Lynch says, “Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.”
So there you have my 2 Market Volatility Tips. Hope they are helpful!