New Hampshire money tips: Stock market turbulence

Advice offered by Marc Hebert, a founder of The Harbor Group Inc. The company is a registered investment advisor. If you have any questions about finance or if you’d like to suggest a future topic, email [email protected] stock market investors desire the same results from their portfolios: strong and consistent gains from the markets. Stomaching the volatility of falling stock prices is difficult. Often, investors respond to a drop in prices by panicking and selling or sticking their heads in the sand. This often happens despite deteriorating business fundamentals. But more thoughtful investors view a stock market correction or a downturn as an opportunity to evaluate the risk in their portfolios and make improvements where necessary.When confronted with turbulence in the markets – whether it is a one-day drop, a lengthy market downturn, or an extended bear market – take time to evaluate your portfolio. Handling volatility can be difficult. Here are some suggestions to help you and your portfolio survive turbulence in the stock market. Have a well-thought-out investment plan. A plan will help you through various market conditions and, if it is truly well thought out, it will be easier to stick with it during market drops. Review your risk tolerance and allocation. See if your plan properly reflects it. Don’t let fear lead you to impulsive behaviors – these are dangerous when it comes to your investments. For reassurance, consider how markets have reacted in the past to drops. While past performance is no guarantee of future results, if you pull up a historical performance chart of the S&P 500 Index, you can see how the market has reacted to downturns.Keep a long-term perspective. One of the few sure things about the stock market is that it will always experience periods of ups and downs. Keeping a balanced mindset and remaining focused on your financial goals is key. Often, a strategy that uses a buy-and-hold approach, which involves making an investment and maintaining it…

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