Managing Emotions and Expectations during Market UncertaintySubmitted by Nick Parnell on April 7th, 2020
Riding the highs and experiencing the lows. That's the way of the investment market. What if we told you that the key to sound and quality investing is learning how to keep it cool when the market is in turmoil? In this article, we are going to look at some of the tools that can help you manage your emotions and expectations during market uncertainty.
Take some time to relax
When you first open your phone, you might start to freak out. No matter if the market is a bull or a bear, the changes can impact you in the thousands of dollars. However, that's when you need to take a minute and relax. A few of our favourite ways to relax are to do some deep breathing exercises, get in a workout and even take a walk. Taking some time before sending that email or picking up the phone will make the difference between an emotional decision and a smart decision.
Remember the past
The stock market is nothing but repetitive and that's part of the reason why experts can predict what will happen. So, let’s take the 2008 recession. The market started to tank and investors were panicking. However, within a few months, the stocks were back to normal, and the market corrected itself. No matter the issue, the market returns to normal; that is what history has taught us. If you can remember that the market will always correct itself, you will be well on your way to managing your emotions and expectations during market uncertainty.
Depend on your financial advisor
You've trusted your financial advisor through the good times, so why would that change when the market takes a bit of a downturn? Your financial advisor will be able to navigate the choppy seas and ensure that your money comes out stronger. They're the financial experts and no matter what's happening in the market, they're there for you. Remember to trust your financial advisor and you'll be able to manage your emotions with ease.
When it comes to managing emotions and expectations during market uncertainty, there are three essential tools that you can use:
- Take some time to relax.
- Remember that the market always corrects itself over time.
- Trust your financial advisor in.
Using these tools will help your overall business strategy and help you avoid emotional investing!
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