As we enter another month of the COVID-19 pandemic, investors continue to face uncertain market impacts. It is inevitable that the markets will rise and fall over the short term, and it is nearly impossible to predict the good days from the bad.
However, as our team has mentioned in a previous post, investors shouldn’t fear market volatility. In fact, there are ways for investors to navigate through turbulent markets without harming their portfolios.
To help investors during this unprecedented season, our team put together some tips for investing during volatile times.
During times of heightened market volatility, especially during the COVID-19 pandemic, it’s important to remain calm. Investors must remember to keep emotion out of their strategies as it may lead to impulsive decisions. For instance, investors may feel the need to sell their stocks now to prevent additional losses, but this often isn’t ideal as markets tend to recover over time. Making investment decisions based on emotion will only move you further away from your long-term goals – so try to remain calm and invest with a clear mind.
Diversify Your Portfolio
It is also important to have a sufficiently diversified portfolio to help weather the storm of uncertainty. Having a broad mix of investments across different companies, industries, geographical locations, and asset classes (stocks and bonds) can help limit the effects of a market downturn on your portfolio. For instance, if one of your markets loses value, then another may post gains, creating a balance in your portfolio.
Our portfolio managers at The RaeLipskie Partnership can help ensure that your portfolio is diversified and balanced.
Remember That Your Portfolio Managers Are Regularly Reviewing Your Portfolios
It is important to remember that your portfolio manager is regularly reviewing your portfolio and assessing it for both risks and opportunities. Market volatility presents an opportunity for your portfolio manager to reassess your investment strategy and make adjustments to your portfolio as needed. This may even become beneficial in the long-term as new opportunities may arise that were perhaps overlooked before the market downturn.
Our portfolio managers at The RaeLipskie Partnership always ensure they are making the best decisions for your investment strategy, especially during volatile times.
We understand this is a difficult time financially, but The RaeLipskie Partnership is here for you.
If you would like to speak to a portfolio manager about investing during volatile times, contact us today!