Expert tips for handling market volatility
Market volatility causes some uncertainty – but also opportunity. Here are some tips.
Updated 
2 min. read
Volatility is a natural part of investing. Markets go up and down, the economy shifts, times are changing and politics also have an impact. Every investor has to manage these uncertain times. Liz Schieck, certified financial planner with the New School of Finance, shares her thoughts on navigating volatile markets.
How do investors typically feel during volatile markets?
Investors tend to feel nervous and panic can start to set in. People don't make the most informed investment choices when they’re under emotional stress like that. And, so, it’s really important to manage those emotions because they can lead to decisions that aren’t necessarily best for your portfolio and financial future.
What should investors do during stressful down markets?
The most important thing is to take a look at your financial plan. What are you investing for? When are you intending to use that money? If you're intending to use that money in the far future then don’t panic and have faith in the plan that the market will fluctuate. If you’re very close to retiring, you might want to consider making changes to your portfolio to help you reach your goals.
What happens if I take my money out during a downturn?
The problem with that is nobody can really time the market because we don't have a crystal ball. There are problems that can come with taking money out during a downturn. You might get back in way too late, you might miss out on growth that could have been happening in the meantime. It’s better to stick with your plan.
Make an investment plan that takes into account the fact that the market is going to fluctuate. Markets are volatile; they go up, they go down. Modern technology gives every little bit of information at our fingertips, providing opportunities to better handle volatile markets – but also to obsess over the day-to-day performance of your account. Log out of your account, set it aside. Don't look at it every day because that's how you're going to stress over time seeing the fluctuating value.
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