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M.A. Kluemke and Associates

How do I manage a volatile market?

How do I manage a volatile market?

We’ve seen a lot of market volatility in recent months, which can be uncomfortable for investors and lead to radical decisions, even for the most seasoned of us.

First and foremost, please don’t panic. You must keep perspective. Here are five strategies to work through during the peaks and troughs of the marketplace.

Stick with the plan

The implications of a volatile market are different for those starting their career compared with those nearing retirement. This means it’s vital you understand your individual situation and financial plan. The first step is to speak with your financial advisor. He or she will have a handle on the situation and will keep you are on track to help achieve your goals.

Don’t let your heart lead your head

If your emotions are likely to drive your investment decisions during a volatile market focus on the long-term goal rather than the day-to-day ups and downs.

Diversify your portfolio

As markets change so might your portfolio. It’s important to remember that times of volatility bring with them the opportunity to reevaluate your assets. Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Don’t sit back during volatility

A downward market could present an opportunity to purchase securities at a discounted value. Remember, this is your money and your financial future. Being proactive may pay off.

It’s good to talk

Discussing market conditions with your financial advisor can be helpful.  If you don’t already have one, what are you waiting for?

You can call 217 679 1043 or email erin@makluemke.com for more information.

By Erin Gutzman

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck