Market Volatility Got You Down?

Have you ever had a week where you felt like the market was dropping, then rising, then dropping again? What about in recent months when it appears to do nothing but drop? It can be hard to know what to do when this happens. Do you sell your investments? Hold on tight and hope for the best? Or just ignore it all and go about your day as usual? If so, don't worry—you're not alone! In fact, many investors find themselves wondering how they should react to market volatility. In this post, we'll explore some ways of dealing with market volatility so that you can feel more confident in your financial decisions.

When to Buy and When to Wait

When you're thinking about buying, it's important to be aware of market volatility. Market volatility is the amount of movement in an investment's price over a given period of time.

If you find yourself unsure about whether or not it's safe for you to buy now or if now is too soon (or too late), then consider waiting until things have settled down again before making your purchase decision. When investing your money, always err on the side of caution so that everything goes smoothly and nothing gets messed up by making decisions based on emotions instead of facts!

Another option is to consider dollar-cost averaging your investment, which means that you invest a certain amount every week or month. This helps prevent your emotions from getting the best of you when making decisions about when to invest and how much. Dollar-cost averaging is a great option for making sure that your portfolio is well-rounded and secure enough for any market conditions that may arise in the future.

The First Thing to Do

The first thing to do when markets get volatile is not to panic. This is a great time to talk with your financial advisor or family members who are more experienced with investing, and ask them what they would recommend. Next, make sure you have a plan in place so that when the market returns to normal, your assets are still protected, and any gains will be maximized

Have a Plan

If you're worried about the effect of market volatility on your finances, it's time to take action. You can't control the markets, but you can prepare yourself for a variety of outcomes.

Here are some things we recommend:

• Have a financial plan in place and stick to it. This is one of the most important steps you can take. It will help keep you from making rash decisions when things get tough.
• Have a retirement plan in place and stick to it (if applicable). A lot of people don't save enough money for retirement; this is especially true if they haven't had much time yet at their jobs or have been changing jobs frequently as they climb up their career ladder. We recommend that anyone who doesn't have access to an employer-sponsored pension plan or similar program set aside at least 10% of their income automatically each month into an RSP or TFSA so that saving becomes automatic and second nature—and something they won’t even notice missing when times get tough!

Look Forward

Trading can be a roller coaster. You may have heard that “the market has its ups and downs,” but what does that really mean? Well, it means that the value of your investments will fluctuate over time. The price of certain assets (such as stocks or mutual funds) tends to rise and fall on a daily basis, creating these ups and downs in value. In other words, if you own some stock today at $10 per share, tomorrow it might be worth $9 per share or even 11$ per share--it all depends on what happens with the underlying company's performance between now and then, which is out of your control. This volatility is why many people are reluctant to invest their money in the stock market: they don't know how much they'll get back down the road and don't want to risk losing any potential earnings by investing too early or too late.

Rethink Your Portfolio

The best way to prepare for a volatile market is to re-evaluate your investment portfolio. It's easy to get stuck in a rut and have your money spread out over too many investments, or even worse—too many different assets. When the market dips, it's important to have a strong base of assets that remain stable through the storm.

• Look at each category of your portfolio: stocks, bonds, and precious metals are all likely candidates for re-allocation
• Review which companies you own shares in—is one company making up an undue amount of your equity? Are there any companies with low share prices that you'd like to buy more shares at?
• Look at how much cash is sitting around waiting for an opportunity: if so, consider investing it now while interest rates are still historically low

Market volatility can be unnerving but there are things you can do to help yourself and your finances.

It's important to have a plan for market volatility. Whether you're a first-time investor or a seasoned pro, taking steps now can help you stay calm and make smart financial decisions.

• Have a plan: One of the best ways to manage your investments during periods of market volatility is to have an investment strategy in place before anything happens. While it may be difficult to maintain your composure when stocks are dropping, having a specific process in place helps keep emotions at bay while you execute your plan. You'll feel more confident knowing that you already have an idea of what direction things will go and how they might affect you financially.
• Look forward: The worst thing someone can do during volatile markets is panic—and that includes selling their stock holdings too soon or not buying enough because they're worried about losing money on their investment later on down the road (which could happen). The key here is remembering that volatility isn't always bad news; sometimes it means there's more opportunity for growth down the line if companies perform well enough during these times of uncertainty for investors' tastes—so don't let fear get in the way!

Now that you have a better understanding of market volatility and what it means for your investments, it’s time to take action. We hope this article has helped you rethink your portfolio and make smarter investment decisions. The first step is always the hardest but hopefully, we’ve given you some ideas on how to get started!

Feel free to reach out to us if you wish to discuss your own unique situation or get a second opinion on your overall financial health and portfolio makeup.