How to Remain Calm During Market Volatility

August 28, 2019
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In every action movie, there is a climactic scene where the hero is faced with seemingly unsurmountable odds. He or she must face the ultimate test. They must remain, calm, cool and collected while the world around them crumbles.

Reacting Emotionally to Market Changes

Sometimes this is what it feels like to be a good investor. We all know there are no guarantees when it comes to investing and the market will always have its ebbs and flows. Lately, we’ve seen a lot of market volatility with the stock market amidst the China trade war. Some investors see the DOW drop drastically and they immediately hit the panic button. It is hard not to react somewhat emotionally in situations like this. It’s understandable. However, that is no way to be a successful investor.

Accepting the Market Volatility

First, you have to understand and accept that market volatility comes with the territory. There are going to be ups, downs and sudden swings. If you are only trying to catch lightning in a bottle by “buying low” and “selling high” at just the right times, your chances of succeeding in the long run are slim. In fact, you are more likely to go broke as you try to get rich quick.

Successful investing is a long-term strategy. Sure, you have to make certain moves when the time is right. You just can’t be frivolous and you can’t overreact every time you hear a bit of good news or bad news. You have to pay attention to the trends—both short-term and long-term—while still somehow tuning out the “noise” that can lead to hasty decisions.

Hiring the Right Financial Advisor

Second, it really helps to have a knowledgeable financial advisor on your side. An investment strategist will be able to cut through the noise and help you make meaningful moves when meaningful moves need to be made. When there are big market swings like there have been recently, an investment advisor knows how to see the light at the end of the tunnel. If the future does look bleak, then they know how to handle that, too. There are positive moves you can make in a negative market.

On the Illumination Wealth Blog, we’ll be covering a variety of investment topics over the next few weeks. We’ve been dealing with a lot of clients who are feeling that sense of panic and worry lately. Our goal is to equip people with the education and advice needed to make wise investment decisions in today’s turbulent market—and well into future markets that have yet to be determined.

For help with your investment portfolio and all matters of financial planning for yourself or your business, the Illumination Wealth team is ready to serve your financial advisement needs. Contact us today to schedule an initial consultation and let us show you what to do in any market conditions. You’ll be amazed at how successful your investments can be when you remain calm and make smart moves with your money.