How to Deal with a Volatile Stock Market:

5 Simple Tips to Employ

The current economy is not in a good place to support market stability. With COVID-19, the Russo-Ukrainian War, and skyrocketing inflation, volatility is practically the norm.

Uncertainty is very high, and it can be tough to determine how to invest and allocate money in times like these.

Still, it's important to remember that certain principles on how to deal with a volatile stock market hold, regardless of whether the volatility is high or not. Those who want to preserve their wealth during volatile times will do well to remember such principles.

Unfortunately, many investors lose money on the sale of their holdings because they sell at a loss. So one important thing to remind yourself about when the markets are experiencing volatility is your time horizon.

Remind Yourself of Your Time Horizon

Chances are, you're investing for the long run for some retirement or wealth goal. If that's the case, it doesn't matter that the stock market is experiencing volatility

So if you're not planning on liquidating your position anytime soon, you don't need to worry about short-term market fluctuations.

If you're concerned about volatility and want to introduce more stability into your portfolio, consider diversifying away from stocks and into bonds.

Follow an 80/20 Portfolio Structure

One significant benefit of the stocks and bonds portfolio is it's straightforward to rebalance. For example, if stocks take a big hit, their percentage in your portfolio will decrease, and you can add to your bond allocation.

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