You've probably already noticed that we are experiencing quite a bit of market volatility, primarily due to concerns about tariffs. Here are a few points to remember whenever we experience a volatile market.
1) No one can predict the market. We won't know where the top is, nor the bottom.
2) Consider putting cash to work. A market decline is an opportunity to invest and sophisticated investors use these times to put money to work.
3) Stick to your financial plan. If you have an adequately funded emergency account, your debt is under control, and you are working with a good, experienced financial advisor, these are simply market fluctuations which are to be expected every now and then. Having a good plan in place is most important and it will get you through a tough market.
4) Don't panic and sell at the worst time. One of your financial advisor's most important roles is to talk clients off the ledge when it gets a little scary.
5) If you have cash to invest, consider moving small amounts into the market, rather than investing all at once. As I mentioned in point one above, no one can predict the bottom and you are usually better off making several investments over time instead of going all in.
6) Call your advisor if you have questions or just need a pep talk. From my perspective as a seasoned advisor who experienced sever volatility in 2008 and 2009, the volatility of the market, at this point, pales in comparison. However, if you are a new investor, or you haven't experienced a lot of volatility, it's perfectly okay to pick up the phone and get reliable information from your advisor. Most advisors try to stay in contact with their clients regularly, but we can't always know who needs a call. Don't be shy about calling us before we call you.
7) Remember that bad news sells. We've all heard this but, remember, it really does. For example, news channels aren't talking a lot about the lower- than- expected inflation we are experiencing right now. Instead, they are throwing around terms such as "market crash" which can create a sense of fear.