This week has seen huge shifts in the market—one day the Dow Jones is down 1,500 points, the next day it is up 1,000 points. It can be difficult to see a stock portfolio lose so much money in a short period of time. Here are a few tips for getting through times of market volatility.
- Wait it out. Don’t be tempted to sell your stocks. Consider not looking at your portfolio for a short while so you don’t have to see all of the daily ups and downs.
- Ensure you have a diverse portfolio of investments. It is helpful to have investments in international stocks in addition to the U.S. stock market, and to have investments in real estate, bonds, CDs, etc. Then when the U.S. stock market goes down, you still have a certain amount of your assets that aren’t as affected.
- Think about buying stocks if they are priced low. If you have cash to invest, it is a great time to buy into the stock market if the market is at a low. But, be ready to invest that money for the long term as it may take some time for the market to rise again.
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