Look, but don't stare. This short phrase is solid advice for all investors in this uncertain time. With such a volatile market, it can be tempting to check in on what the market is doing (and honestly, with news reports, it can even be hard to avoid!) and how that is affecting your investments. But, this strong desire to inspect the market can be detrimental to your mental health and won’t accomplish anything. Instead of starting at your investments, only look. A periodic review of your investment portfolio is necessary, but you still shouldn't let short term moves in the market affect your long-term goals.
Think of this like your bathroom scale: if you weigh yourself multiple times throughout the day, you will see your weight go up and down. You would then make snap decisions. For example, if you see your weight tick up a bit mid-morning, you would suddenly make eating restrictions for yourself. Or perhaps ease back and have that extra cookie in the afternoon if you see the number on the scale drop. We all know that a healthy weight comes from smart choices throughout the day. The same applies to our investing!
These are certainly unusual times we are living. Gas costs less than $2 per gallon, but we can’t go anywhere. Schools are closed. We have been “ordered” to stay home. Church buildings were empty on Easter. My wife & I have been playing the, “why do you do it that way” working around the house game. Clearly, there are no winners.
Unlike games at my house, I do believe we will survive these unusual times. I believe the economy, the stock market, and the United States will be better sooner rather than later. I believe risk has been reduced in the market at these current levels.
Wrapping It Up
I can’t promise anything with investing, but I believe in the future. I don’t have a crystal ball. These are still uncertain times, and, as with anything, there are always risks with investing. But I believe that hope is the present enjoyment of a future promise - and I have that hope! We can mitigate these risks and continue to have hope in investing by periodically analyzing investments. This is always important but especially during times like these.
Are you ready to analyze your investments? Schedule an appointment with me today.
The opinions/views within do not necessarily reflect those of Voya Financial Advisors. In addition, they are not intended to provided specific advice or recommendations for any individual, attorney, accountant or tax advisor regarding your individual situation prior to making any investment decisions.