Keep calm, carry on during a volatile market

It can be tough to watch your investment accounts go up and down during a volatile stock market period. Market volatility is the rise and/or fall of the value of investments in a sustained period of time. When things get rocky, don’t panic. Instead, take a moment to consider these four tactics before you make major changes in your investment portfolio.

Remember it’s happened before
The stock market has experienced volatility since its creation in 1817. Recall events like the Great Depression in the 1930s and the Great Recession of 2008. With time, the market has traditionally rebounded to experience overall growth.

Avoid trying to time the market
During times of volatility, the market changes very quickly. If you’re not a seasoned investor, it’s best not to try to time the market’s next swing with selling and buying investments.

Continue to invest
Keep calm and keep contributing to your investment accounts (e.g., 401(k) or other employer-sponsored plans) during both the good and bad times. By continuing to invest a set amount regularly, regardless of the volatility in the market, over time you are reducing the overall price you paid for the investments.

Maintain a diversified portfolio
Now is not the time to lose focus on your overall investment goals and your investment strategy to help accomplish those goals. It may be time to revisit your financial goals, risk tolerance and more by taking control of your financial investments. If you have properly diversified your investments based on your risk tolerance, the overall impact of market volatility could improve your portfolio over the long term.

For help with setting goals and structuring your investments, contact your financial advisor.

Article provided by Local Government Federal Credit Union.
The advice provided is for informational purposes only. Contact a financial advisor for additional guidance.