How to Stay Calm During Periods of High Market Volatility??

When markets are volatile, it is only natural to feel nervous and uneasy. With access to so much real-time information nowadays, it's hard not to think about or check how your investment(s) is performing.

Below are a few tips to help you stay calm and ultimately avoid knee-jerk reactions which could end up setting you back

Remember your Plan

It's more that likely that you have planned for your future retirement or some other medium to long term objective such as your children's education. Try to take a back seat and focus on the plan. Yes, there will be bumps along the road but make sure stay on track. Focusing on your long-term goal will help to push all the noise to one side.

Investing vs Cash

Take a moment to think how your money would grow (or how little it would grow) if you simply left it on deposit. The reality is, in the current environment, that savings placed on deposit will fail to keep pace with inflation. Being exposed to the markets will give you the best chance of greater returns. That is, of course, if your appetite to risk and capacity for loss allows for it.

Take Comfort from the History Books

There have been many world events before now that have impacted economies including stock market crashes, global recessions and wars. Despite these challenges, markets have typically bounced back and gone on to provide handsome returns over the longer term. One of the most recent examples of this is the outbreak of Covid-19 in March 2020 where markets declined significantly, but by the end of the same year they were mainly above what they were pre-March 2020.

Make Sure your Portfolio is Diversified

A very effective measure investors can take to limit losses in their portfolio is to spread their money across a range of asset classes such as equities, bonds, property and cash. The reason for this is that certain asset classes can perform differently at different times depending on market conditions. A diversified portfolio can help smoothen out returns over time.

Speak to your Advisor

If you're feeling overwhelmed or uncertain about your investment decisions, consider seeking professional advice. A financial advisor can help you create an investment plan, manage risk, and stay focused on your long-term goals.

In conclusion, staying calm during periods of high market volatility is crucial to successful investing. By staying informed, focusing on the long-term, diversifying your portfolio, having a plan, staying disciplined, and seeking professional advice if necessary, you can weather the ups and downs of the stock market and achieve your investment goals.

If you found this article helpful and would like to learn more about how to make the most of your finances, feel free to connect and start a conversation or contact me directly at +353 (87) 628 3743??