How To Deal With a Volatile Stock Market: 5 Simple Tips

Investing in the stock market can be difficult when volatility is high. And 2022 has seen more volatility than almost any other year on record.

Unfortunately, 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.

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.

Those who benefitted from the recent fluctuations are people who knew how to deal with a volatile stock market.

Riding Out the Ups and Downs

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.

Remind Yourself of Your Investing Timeline

Adopting an 80/20 stocks and bonds structure can help you limit fluctuations in your portfolio and better deal with volatility.

Follow an 80/20 Portfolio Structure

You can employ dollar cost averaging very effectively by setting up automatic investing. To do so, call your brokerage and ask them to automatically deposit a set amount of money from your bank account every month and then invest it into an ETF, index fund, or stock of choice.

Set up Automatic Investing

A financial planner is also someone who can act as a buffer of common sense for you when the markets start getting volatile. They can remind you that even though lots of things are happening worldwide, your financial goals likely haven't changed.

Talk to a Financial Planner

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