5 Things to Do During a Market Correction
5 Things to Do During a Market Correction
There’s a lot of concern with downturns in the global market right now, and I think that it’s worthy of a conversation. We’ve talked about volatility before in the past: in economics, it refers to a rapid and predictable change. Around the world, there’s been a bit of talk about how inflation, international conflict, and the long-term effects of the pandemic will impact our economic future. The thing of it is, how can anyone know for sure what it will look like?
The Resource Center specializes in investment planning and financial planning. We offer a large umbrella of services, but for right now–I’d like to address some concerns I’ve seen in the recent economic downturn, as well as offer some advice on what to do during a market correction.
1. Be Patient
Don’t change your patterns or investment behavior on a knee-jerk reaction. Despite a general perception that market corrections are bad, they can sometimes be a great opportunity for long-term growth and don’t always require an adjustment in your current strategy.
Like I mentioned earlier, no one knows what the future holds. Market corrections could take months, but they could also take days. Be patient with the market, and with yourself. Go outside, clear your head, get away from the news, and enjoy our beautiful Ozarks sunshine. You always have the option to let us shoulder some of the stress so you can focus on the things you enjoy.
2. Don’t Overthink
If you find your thoughts constantly buzzing, here’s the main question you should focus on: what are you trying to accomplish with your plan? Whenever you’re feeling anxious and uncertain, remind yourself what your goals are. Don’t let the what if’s constantly occupy your brain. Financial planners are a great resource for anyone who feels overwhelmed by the stock market and wants to push it to the side of their mind.
One reason people may experience stress around market changes is that major media outlets can make some of the technicalities sound very daunting. If you’d like to learn a little more about market corrections, and maybe put your mind at ease, this is a great article that I love to recommend:
3. Fight Your Instinction
Market corrections do not have to be a scary experience. In fact, it’s entirely possible that these changes could play out in your favor. Depending on your financial situation and your future plans, downturns can be an excellent opportunity to start buying more shares with the same amount of invested money.
Another reason you might want to avoid sudden changes is to avoid unexpected taxes and fees. Make sure that you’re taking your time to decide if you’re making a change because you’re informed and ready, or if you’re making the change because you feel pressured.
4. Stay Diversified
You know that old saying: “don’t keep all your eggs in one basket”? It still holds true. Investments will always require a little bit of risk, and each client requires a different investment strategy. Diversification is a common plan to keep your investments planted in different areas of the market. That way, a decline in one market won’t impact all of your assets. I also evaluate each individual to offer a personalized strategy that may include a conversation plan, a competitive plan, a moderate plan, or a little variety.
One of the reasons that people never meet with a financial advisor is because they’re worried about the costs. For that reason, I offer a free consultation to evaluate your current standing and offer professional advice on the options that are available to you. Here’s our contact information. We look forward to working with you and hope to see you soon!
Visit Us: 1304 E. Kingsley St, Springfield, MO 65804
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The Resource Center, Inc. is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services are offered only by duly registered individuals through AE Wealth Management, LLC, (AEWM). AEWM and The Resource Center are not affiliated companies.
Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 01244496 – 3/22