Surges & Slumps

By Mark Bertrang, The Creator of the Financialoscopy® on Thursday, January 10th 2019

Whether it's trade policy concerns, tax breaks, inflation fears, economic optimism or recession fears, the stock market has reacted. Investors have been on a rollercoaster ride that raises the question: what should you do in times of volatile markets? In many situations, the answer is to sit tight, and take the long view.

One enduring truth about stock markets is that they go up, and they go down—and the steeper the rise or the fall, the more tempting it can be to derail a long-term strategy with a snap decision, especially when markets fall sharply, we tend to react on impulse. Before that becomes your reaction to market volatility, focus first on your goals and your investment timeframe."

Take investors who need short-term liquidity, if you plan to make a large purchase such as a house or a car, or you know a tuition bill is about to come due, then you will likely want to pursue a different path than investors who do not need cash right away. All else being equal, the latter group might be better able to stomach volatility in the short term. But any investor who cannot bear the thought of—or cannot afford—locking in losses in times of volatility may want to explore less volatile alternatives to help secure their portfolio's value.

Whether any given day's drop reflects a market correction, an anomaly or the beginning of a bear market can take time to figure out—and is outside the control of any one investor. So, control what you can—and focus on key investing concepts such as staying diversified and rebalancing to stay aligned with your goals.

Share |

Recent Blogs

What’s on your wish list?
Thursday, May 9th
Learn life, as you work
Thursday, May 2nd
Make Hard Decisions Now
Thursday, April 25th

All Blog Posts »

Need a Realtor? - Broker Services - La Crosse, Onalaska, Holmen, West Salem
Need a Realtor?
Click Here!

Bertrang Financial Corp. | 1401 Main Street, Suite #101, Onalaska, WI 54650-2837 | Phone: 608 782-5433 | Fax: 608 782-1329 | Sitemap
Securities offered through Brooklight Place Securities, Inc., 1901 Butterfield Road, Suite 220, Downers Grove, IL 60515. 888-976-0659 Member FINRA & SIPC. Investment Advisory Services offered through Interactive Financial Advisors, Inc. Bertrang Financial Corp. offers non-securities based insurance as an independent business. Bertrang Financial Corp., Brooklight Place Securities, Inc. and Interactive Financial Advisors, Inc. are not affiliated. © Bertrang Financial Corp. 2019
Check the background of this investment professional on FINRA BrokerCheck.