July 20, 2023
Market declines, also known as market downturns or bear markets, refer to periods of time when the overall stock market experiences a sustained decline in value. It is an inevitable part of investing, but with the right decisions, you can still manage your investments wisely! Hence, here are five tips you can consider on what to do when the market goes down:
Relax! Market declines are part of investing. That is why Peter Lynch, a legendary portfolio manager said:
People who succeed in the stock market also accept periodic losses, setbacks and unexpected occurrences. Calamitous drops do not scare them out of the game.
Whenever there is a sudden decline in stock prices, cashing out in panic is the worst thing you could do. Consider also re-entry expenses and the fact that no one knows when the market will rebound.
Always bear in mind that stock markets will never go down to zero and that the economy always recovers and markets have historically recovered from downturns. Instead of overthinking about the market downturn, focus on your long-term financial plans that you have made and avoid making hasty decisions based on the short-term dips of the market.
Frequently changing and cutting your investments may lead to missing out on significant potential profits that could arise when the markets rebound. Stay confident with your investment plan!
Yes, you read it right! You can buy more shares while the market is down and adopt the cost-averaging approach, wherein you invest for the future by making consistent monthly contributions to purchase shares, regardless of the current market price.
A cost-averaging strategy helps you minimize the losses and disciplines you to save efficiently in the long run! Consistency pays off! Accumulate assets steadily, regardless of market ups and downs.
There is nothing wrong with asking for professional advice, especially if it involves your money! Get in touch with Cocolife Asset Management’s investment specialists if you’re unsure of how to navigate through market downturns.
With their expertise, they can help you make informed decisions and provide investment options fit for the current market situation.
Keep informed on market news, economic indicators, and company-specific developments. Be cautious of media hype and short-term noise and focus on reliable sources of information!
Stay updated with the latest happenings in the market by following and visiting CAMCI’s official sites:
🔰 CAMCI Viber FinWatch community:
🔰 CAMCI Official Facebook page:
Remember, while market downturns can be challenging, they also present opportunities for growth and adaptation. By implementing the right strategies and maintaining a steady hand, you can successfully navigate through these fluctuations and position yourself for a more secure financial future!