Over the last few months the stock market has been incredibly volatile. Talk of Greek and other European county defaults, a U.S. government debt downgrade and concerns of another recession are plenty to worry about. If you are trying to time the stock market and guess which turn is coming next you are very likely to get whipsawed.
So do you worry about the risks facing the economy or do you have someone you can talk to about your concerns?
I have noticed recently a very marked difference in the attitudes of my clients compared with that of prospective clients. Imagine how it feels to have a financial plan and to be working with someone you can trust. The fact is that, through regular meetings and reporting, clients’ know where they stand with their retirement planning and are focused on long-term goals. This allows them to ignore some of the short-term ‘reasons to panic’ offered up daily by the media.
It is a normal human response to overreact to bad news or events and possibly make poor decisions based on what we feel is right at the time. We also tend to have a more limited response to positive experiences.
Do your emotions have you stuck in neutral lately? A trusted adviser can help you stay focused on your long term goals and avoid being sidetracked by market volatility.