Volatility

2 Tips for Dealing with Market Volatility

Last week at my Rotary Club meeting, our scheduled speaker was a no show. When our President asked if anyone had something they would like to talk about, I offered to present one of my recent Accountable Update articles, 10 Questions for Every Investor.

The article was well suited for an impromptu presentation, with several charts interspersed with practical advice. But when we got to the Q&A, it became apparent that the recent market volatility was weighing on some folks. The question that was seemingly on everyone’s mind was, “When will stocks stop going down?”

My answer, as it is anytime someone asks me what I think the stock market will do tomorrow, is to offer a couple of tips for dealing with market volatility.

Bear Market (and New Car) Advice

By most metrics, we are now in a bear market (20%+ fall in prices). It is easy to look back and say that you saw it coming. You may be feeling regret about the losses we have incurred since the peaks back in January. And all of that is perfectly normal. As will be claims by some that they could help you avoid periods such as this.

Stock Market Correction Lessons

Stocks have been at or near a correction (defined as a 10% drop) for the last month or so. In the case of some foreign markets, the selloff has reached into bear market territory (20%+ drop). In virtually every market, gains earned early in the year have diminished or even turned to losses.

Headlines have been rife with commentators discussing “death crosses”, bursting bubbles, and falling knives. People that “called the last selloff” are featured with their latest predictions.

Stop me if you’ve seen this movie before.

If, however, you are on feeling as if you must do SOMETHING as a result of the recent volatility, please check out a couple of my articles written during another downturn back in 2015.