4. Tell yourself that this too shall pass
The financial markets are historically cyclical. Even if you wishyou had sold at what turned out to be a market peak, or regrethaving sat out a buying opportunity, you may well get another
chance at some point. Even if you're considering changes, a volatile market can be an inopportune time to turn your portfolio inside out. A well-thought-out asset allocation is still the basis of good investment planning.
5. Be willing to learn from your mistakes
Anyone can look good during bull markets; smart investors are produced by the inevitable rough patches. Even the best aren't right all the time. If an earlier choice now seems rash, sometimes
the best strategy is to take a tax loss, learn from the experience, and apply the lesson to future decisions. Expert help can prepare you and your portfolio to both weather and take advantage of the market's ups and downs.
6. Consider playing defense
During volatile periods in the stock market, many investors reexamine their allocation to such defensive sectors as consumer staples or utilities (though like all stocks, those sectors involve their own risks, and are not necessarily immune from overall market movements). Dividends also can help cushion the impact of price swings. According to Standard and Poor's, dividend income has represented roughly one-third of themonthly total return on the S&P 500 since 1926, ranging from a high of 53% during the 1940s to a low of 14% in the 1990s, when investors focused on growth.
7. Stay on course by continuing to save
Even if the value of your holdings fluctuates, regularly adding to an account designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging. If you're using dollar-cost averaging-- investing a specific amount regularly regardless of fluctuating price levels-- you may be getting a bargain by buying when prices are down. However, dollarcost averaging can't guarantee a profit or protect against a loss. Also, consider your ability to continue purchases through market slumps; systematic investing doesn't work if you stop when prices are down.
We'll save the last four ways to keep yourself from making hasty decisions until next week. If you feel you need to make changes to your portfolio there are ways to make small changes rather than a total makeover of your portfolio. Our Raymond James agents can help set up the right portfolio for your needs. Contact Dustin, Sharon or Travis today at 882-4280
The financial markets are historically cyclical. Even if you wishyou had sold at what turned out to be a market peak, or regrethaving sat out a buying opportunity, you may well get another
chance at some point. Even if you're considering changes, a volatile market can be an inopportune time to turn your portfolio inside out. A well-thought-out asset allocation is still the basis of good investment planning.
5. Be willing to learn from your mistakes
Anyone can look good during bull markets; smart investors are produced by the inevitable rough patches. Even the best aren't right all the time. If an earlier choice now seems rash, sometimes
the best strategy is to take a tax loss, learn from the experience, and apply the lesson to future decisions. Expert help can prepare you and your portfolio to both weather and take advantage of the market's ups and downs.
6. Consider playing defense
During volatile periods in the stock market, many investors reexamine their allocation to such defensive sectors as consumer staples or utilities (though like all stocks, those sectors involve their own risks, and are not necessarily immune from overall market movements). Dividends also can help cushion the impact of price swings. According to Standard and Poor's, dividend income has represented roughly one-third of themonthly total return on the S&P 500 since 1926, ranging from a high of 53% during the 1940s to a low of 14% in the 1990s, when investors focused on growth.
7. Stay on course by continuing to save
Even if the value of your holdings fluctuates, regularly adding to an account designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, your bottom-line number might not be quite so discouraging. If you're using dollar-cost averaging-- investing a specific amount regularly regardless of fluctuating price levels-- you may be getting a bargain by buying when prices are down. However, dollarcost averaging can't guarantee a profit or protect against a loss. Also, consider your ability to continue purchases through market slumps; systematic investing doesn't work if you stop when prices are down.
We'll save the last four ways to keep yourself from making hasty decisions until next week. If you feel you need to make changes to your portfolio there are ways to make small changes rather than a total makeover of your portfolio. Our Raymond James agents can help set up the right portfolio for your needs. Contact Dustin, Sharon or Travis today at 882-4280
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other financial institution insurance, are not deposits or obligations of Reliabank, are not guaranteed by Reliabank, and are subject to risks, including the possible loss of principal.
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