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Friday, July 29, 2016

Your Guide To Stock Market Volatility

American Investment Planners LLC
500 North Broadway, Suite 260, Jericho, NY 11753
(516) 932-5130 / (866) 932-5130
Stock Market | Stock Market Volatility | American Investment Planners LLC
People enter the stock market with the hopes that they'll see a positive return and make some money, so it's only natural for investors to want to get rid of stocks that are performing poorly. However, considering that investing is a long-term strategy, it's important to understand that stocks probably aren't going to perform the same week after week, month after month, and/or year after year. Not to mention, there's no way to truly predict performance either!

Despite the facts, though, we know that new investors may be especially tempted to completely re-do their portfolio when the stock market is volatile. But since this isn't recommended, here are some tips that can help get one through an economic event like this:

Understand what you're getting into.
The best thing you can do for yourself before you begin investing is to be prepared for unexpected market swings. It is not one bit unusual for a stock to go down one day and then skyrocket up the next, or vice versa - if you're prepared for this, it won't seem so bad.

Remember your goals.
There's no reason to not have short-term financial goals, but keep in mind that investing is really ideal for those who have long-term goals they're hoping to achieve. Just because a stock starts performing poorly in your twenties, certainly doesn't mean that it won't become a desirable stock by the time you hit your thirties - everything has its ups and downs!

Make changes only when necessary.
Again, just because a stock performs poorly one day does not mean you need to immediately make changes to your strategy. However, that also doesn't mean that you shouldn't make any changes at all. For example, if you have new financial goals for yourself or your tolerance for risk begins to change, it's okay to adjust your investment strategy to accommodate that.

Have a financial advisor.
Investing can definitely be tricky, which is why you should always work with a professional to determine how you should approach things. Not only can a financial advisor help you best figure out which investments you should put your money into from the start, but they can also provide you with informed updates about the stock market as time goes on and help you understand what's happening and what to expect/do next.

If you are currently without a financial advisor and would like to begin investing, make it your first priority to get in touch with one. We'll make it easy for you - just give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com! We are staffed with highly experienced financial advisors and have worked with generations of families all throughout the country on their financial plans.

To learn more about our specific services, please visit us at www.americaninvestmentplanners.com today.

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