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The stock market is constantly going up and down – and most days, we don’t even notice.
But some days, the market moves so much... you can’t help but notice!
When markets get volatile, here are some DO’s and DONT’s to help you remain calm and stay on track.
First, DON’T overreact to everything you read in the news, see on social media or watch on the television.
DO see what your retirement plan has to say. They may have educational resources and tools to give you perspective on previous down market cycles.
DON’T sell your investment the day after the market drops and wait to buy it back after it goes up. That could mean you’re locking in losses and missing a potential rebound. In fact, the best trading days are often within one month of the worst trading days, so if you’re not in the market, you miss out on those gains.
DO keep contributing and stay invested in your retirement plan. Your contributions may take advantage of attractive market prices that can pay off the next time the market starts to build.
DON’T let market uncertainty throw you out of the investing game altogether.
DO remain patient and aim to stay on track with your long-term retirement plan. Remember, if you have a target date fund, it’s diversified -- that means it has a broad mix of stocks and bonds to help smooth out returns for the long haul. It’s also designed to automatically reduce risk as you approach retirement.
Staying focused on your goals and keeping these tips in mind can help you stay calm in market downturns and continue to invest smartly for your future.
Visit your retirement plan website to learn more today.