There is no way around the truth: this year has been choppy and the most recent market performance has been volatile. Yes, investors have unrealized losses and it is simply impossible to know what will happen today, tomorrow, or next week. Yet, there is no reason to panic. We have seen worse and many investors who have stuck with their high quality investments and long term plans have come out just fine.
Still, times like these beg the question: What should I do?
- Stick with your plan- if you have an advisor then you should have some kind of plan. If nothing in your life has materially changed and your investments, other than experiencing fluctuation, have no fundamental red flags then stay the course. As my colleague, who quotes Winston Churchill often, says "when you're going through hell, just keep going".
- Do not jump in and out of the market- cashing out and then back in again creates major setbacks which are very challenging to recover from. If you feel the need to make modifications, work with your advisor to ensure you are choosing wisely and that your investments are aligned with your goals. It rarely ever pays to completely cash out.
- Don't miss out on opportunity- there may be attractive prices available from high quality companies that can provide the potential for good upside in the long run. Talk through these with your advisor and keep an open mind about their ideas.
Regardless of what's going on in the market, the best way to have peace of mind about the future is to have a plan, be transparent, and ask for help from experts. It's never too late or too early to start planning!
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).