Managing Emotions and Expectations During COVID-19 Market UncertaintySubmitted by Liberty Wealth Management on March 25th, 2020
Riding the highs, and experiencing the lows, it is the way of the investment market. However, what if we told you that the key to sound and quality investing is learning how to keep it cool when the market is in turmoil? Yes, this includes our markets today, where Coronavirus has caused a shocking amount of volatility. In this article, we are going to look at some of the tools that can help you manage your emotions and expectations during market uncertainty.
Take some time to relax
When you first open your phone, you might start to freak out, especially with the volume of information on the Coronavirus pandemic. No matter if the market is a bull or a bear, the changes can impact you in the thousands of dollars. However, that is when you need to take a minute and relax. A couple of our favorite ways to relax are to do some deep breathing exercises, get in a workout and even take a walk. If you’re practicing social distancing, online workout videos can help you get moving in the comfort of your own home. Taking some time before sending that email or picking up the phone will make the difference between an emotional decision and a smart decision.
Remember the Past
The stock market is nothing but repetitive, and it is part of the reason that experts can provide guidance on what will happen. So, let’s take the 2008 recession. The market started to tank, and investors were panicking. However, within a few months, the stocks were back to normal, and the market corrected itself. No matter the issue, the market returns to normal, that is what history has taught us. If you can remember that the market historically has corrected itself, even in the wake of COVID-19, you will be well on your way to managing your emotions and expectations during market uncertainty.
Depend on your financial advisor
You have trusted your financial advisor through the good times, so why would that change when the market takes a bit of a downturn? Your financial advisor will be able to navigate the choppy seas seeking to ensure that your money comes out stronger. They have the experience, and no matter what is happening on the market, they are there for you. Remember to trust your financial advisor, and you will be able to manage your emotions with ease.
When it comes to managing emotions and expectations during COVID-19 market uncertainty, there are three essential tools that you can use. You should look to take some time to relax; you should remember that the market always corrects itself over time; and that your financial advisor is there for a reason. Using these tools will help your overall business strategy and help you avoid emotional investing!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.