Panic; Panic
One of the primary challenges that investors face today is the uncertainty and volatility in the financial markets. Although the market initially showed upward momentum in the earlier stages of the year, fears about inflation and other factors have left the year’s gains uncertain.
Market turbulence is characterized by rapid and unpredictable fluctuations in asset prices, often caused by unexpected economic or political events or natural disasters. The ups and downs of market turbulence can lead to sudden gains or losses for investors, which can create anxiety and exacerbate market volatility. However, it’s important to resist the temptation to make quick decisions based on emotions or panic, as this can lead to significant financial loss.
At Tribler Wealth Advisory we always recommend that investors remain disciplined and prudent during turbulent times, focusing on long-term investment goals rather than short-term market fluctuations has always been a wise tested route.
That does not mean that its easy and we are here to help at any time.
If you are faced with market turmoil, there are more than a few ways that you can manage your risk:
Do not panic. Panic never helps even if you feel stresses and uncomfortable with the markets. Keep emotions way from your decisions.
Keep your portfolio fully diversified to reduce your risk exposure to specific market segments and countries.
Make sure your portfolio is rebalanced regularly. Rebalancing involves selling assets that have performed well and transferring the funds towards asset that have underperformed during the same period of time.
Think long term and keep in mind that market turbulence often sticks around for only shorter periods of time. Focus on your initial investment goals and stay steadfast.
As always, we are available for phone consultation, video conference meeting or face to face meeting. As a financial advisor in Honolulu, we can help you get a clear understanding of the market and your portfolio.
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Investing involves risk. Depending on the different types of investments there may be varying degrees of risk. Socially responsible investing does not guarantee any amount of success. Clients and prospective clients should be prepared to bear investment loss including loss of original principal. Diversification and asset allocation strategies do not assure profit or protect against loss.