Show Notes for this Episode:
Bear markets and volatility are part of the normal investing process. It doesn’t mean they are any fun to endure. But the important thing is keeping your emotions in check and not making emotional decisions with your investment portfolio.
We’ve experienced numerous major bear markets over the years. The key to surviving major market volatility and bear markets is pushing through them without making decisions that may harm your ability to grow your personal wealth. It’s placing logic over emotion, which is easier said than done.
2020 has been a rollercoaster of a year on many levels and the markets haven’t been spared. A global pandemic, recession, high unemployment, protests over race and equality, and not to mention it’s also a presidential election year. In prior presidential election years, markets have been mostly positive. But that doesn’t mean this year will end that way, and it’s dangerous to try and predict.
The U.S. market also lost a third of its value in a little over a month and recovered all of its losses within the following few months to reach all-time highs. This kind of volatility makes it difficult for many investors to stay the course.
A financial advisor can help you from acting on your emotions during times of volatility of course, but that still doesn’t prevent you from actually feeling the fear. In fact, research shows that a good financial advisor can add 2-3% per year in returns to your portfolio through behavioral coaching!
In this podcast episode, I share 3 tips for mastering scary markets.
What you will learn in this episode:
- What to focus on instead of the daily market ups and downs
- Why it’s important to remember THIS evidence regarding market behavior
- The difference between being an investor and a gambler
Join the Women Retire Smart™ Community
The Women Retire Smart™ Community is a virtual community and email newsletter for women professionals within 5 to 15 years of retirement who want to retire smart, secure, and happy!