Many investors are reeling after months of stock market turbulence.
If you keep your eyes on the big picture, you should have an easier time coping with all of that volatility.
Checking my brokerage account balance has not been a fun experience for me this year. Stocks started the year off rocky and have been nothing but volatile ever since. And during the latter part of September, my portfolio took an additional hit when inflation concerns and recession fears led to even more market turbulence.
Whenever you’re in a tough situation, whether it’s an illness, a breakup, or a layoff, it’s a good idea to imagine yourself having already gotten through it. Well, the same holds true with regard to today’s stock market. As frustrating as today’s market might be, try to picture a scenario many years in the future where your portfolio has recovered fully and you’re on track to meet your retirement goals.
In fact, by the time you enter retirement, you may not even remember the stock market events of 2022, because they might end up being nothing more than an insignificant period of volatility. And while it’s difficult to picture that now, you should do your best to try.
The more calm you’re able to remain during periods of stock market turbulence, the less likely you are to make rash decisions that hurt you financially — like selling off stocks when they’re down due to being fearful.
