The stock market isn’t known for its emotional stability. When the markets react emotionally, it’s imperative to think rationally. Although no one can predict the future, panicked selling during a downturn is often the worst thing you can do.
Prevention is the best medicine for our health – washing our hands, not touching our face in public, getting enough rest, eating healthy and avoiding contact with individuals who are ill or have been exposed to someone ill. Similarly, planning for potential volatility before you experience it is vital.
It’s important to understand market volatility is normal. Risks and returns are linked together; you usually have to take some risk to make money. There is no magic strategy that always works in every environment. There will be times your account balance drops in value. Consulting your financial plan and talking to us when you have concerns can give your logic the boost it needs to keep emotions from running roughshod over your financial goals.