Three Thoughts To Help You Ride The Waves Of The Stock Market
Many of you have been watching the stock market over the last several months and it’s no surprise that’s it’s been quite a rollercoaster. In fact, if you think about it in terms of being on a boat and riding the waves of the ocean, it can make you quite seasick. There were huge negative movements in March of this year and since then, it’s almost been a V out when you think of it graphically. In fact, the market has gotten pretty close to where we were before the effects of COVID-19. So, what does that mean? It means a whole lot of things but here are a few key thoughts.
Understand market histories.
When you look at the performance of the stock market over time, it’s not true that markets automatically go down a lot and automatically go up a lot. As a matter of fact, it’s usually more of a prolonged process.
It can be easy to get back into the rhythm of assuming that the markets, as they’re moving up, are going to continue to move up. It’s interesting that we also think in the same linear ways when markets are going down. Here’s a newsflash, neither one of those assumptions is true. Markets move like waves on the ocean, sometimes you’re at the peak and sometimes you’re at the trough. Don’t get caught up in assuming.
Look at your plan.
It’s not good planning to just react to whatever the market may be doing in the short run. Make sure your plan is flexible enough to take advantage of the times at the peak, but also to be resilient in the times of the trough. During your review, make sure that your plan is still keeping with your goals and desires. Don’t make changes just for the sake of making changes. It’s okay to take a breath and look at the big picture.
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These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.