Remember, market fluctuations are normal
Fluctuations are a normal part of the market cycle, but the long-term trend of the market is up. History shows that staying the course during difficult times can pay off in the long run, because market recoveries typically follow downturns.
Keep calm and stay invested
The choices an investor makes during a market decline can have a major impact on long-term goals. Investors who attempt to “time the market” may risk missing periods of exceptional returns. Considering the opportunity loss, it may make sense to remain steadfast in your investments and stay the course.
Manage what you can
Since you can’t control the markets’ ups and downs, what can you do to help minimize the impact on your savings? Reviewing your asset allocation and diversifying your investment options are two important actions you can take to help manage your investment risk.
Keep a long-term perspective
Over time, periods of high returns tend to offset periods of low returns. Holding investments for a longer time typically tends to lessen overall volatility. This may provide some reassurance during a market downturn.
Consider an emergency fund
A dedicated savings account for emergencies may help safeguard your financial future against the unexpected so you can remain financially secure if any large or unplanned expenses arise.