By Melanie Hasty-Grant
5 Steps to Overcoming Fear About The Market
Well folks, I can surely say….This ain’t our first rodeo when it comes to the ups and downs of the stock market. It seems we have quite the perfect storm brewing here in Oklahoma. Between oil prices plunging, the stock market in correction, high Oklahoma jobless claims , and the extreme negativity of this election cycle, it has created a tornado of panic and fear. It feels as though folks are holding on for dear life.
While fear is an understandable emotion, if you act irrationally during periods of stress, you will likely regret it. The current volatility is uncomfortable but it is not unusual or unexpected. It is important to remain rational and disciplined. While we can’t control what happens in Washington, Wall Street, or Main Street, we can control how we prepare for and respond to the resulting gyrations. Thoughtful development of your goals, sound financial planning, disciplined investment management, and asking for professional help are things you can control.
The following are five steps to overcoming fear about the market:
- Develop a clear goal about the money that you have invested. This should include what you will use the money for and when you will need it. If it is for retirement, look at how much income you may have coming from social security or other sources and solve for the difference.
- Determine how much risk you are comfortable with. If you are unsure, google investment risk quiz and see how you score. Most people think that they are fine with risk until the market declines and then suddenly they are not.
- Establish an investment plan. Research at least 10 different investments. Evaluate their potential capital appreciation, dividends, and risk factors. Decide what investments you are going to buy. Make a decision about when and for what reasons you would both buy and sell this specific investment.
- When the market gets rough, stay focused. Do not get emotional and change your plan midstream. If you decide to change your investments, ask yourself if your plan has changed or if you are just scared.
- Ask for help from someone who knows what they are doing. It may be your best investment ever.
For help riding the bucking bull, give us a call. We can help. For more information go to www.waterstonewealth.com or call 918-272-1120. Melanie Hasty-Grant, Experienced Licensed Professional Counselor and Managing Principal at Waterstone Private Wealth Management. Securities offered through Cetera Advisors Network LLC. Member FINRA, SIPC.