What Should You Be Doing in This Current Market Correction
Markets do not always go straight up and for the past few months we have had some significant daily market moves. In the last three days, we saw the Dow Jones Index fall over a thousand points.
It is important not to panic during these times but to remember why you are investing in the ancial markets
The key to successful investing in your portfolio is to have a pre-determined investment process and not to get emotional about the markets. When markets have large swings in daily valuations, it is tough not to act on emotions and to remember your investment process.
One day or week does not make a market
Having discipline in volatile markets is critical to making the right investment decision.
- The consistent use of an investment process will maximize your investment returns and help achieve your long term goals.
- In my 40 plus years of being a student of the market, the one thing that I know that works is being disciplined and sticking to your process, the only way to weather the storm, is to stay the course.
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- Don’t deviate from the plan
- It it the foundation for success.
Know and understand the securities you are invested in. Major sell-offs often provide opportunities for buying companies on the cheap and/or to average down you existing holdings
Regular rebalancing of portfolios will help mitigate the impact of volatile markets