AVID Chat #68: What To Do When There Are Scary HeadlinesInsights
When headlines are scary, it can be easy to slip into being reactionary with your money. There’s an impulse to *do something* rather than stay the course. This is, partially, because we want to feel like we’re in control when so much of the world feels outside of our control.
However, reacting to scary headlines is rarely the way to navigate a down market, or a global event that’s impacting your money. Before we dig into what to do when headlines have you feeling nervous, don’t miss our timestamp:
0:40 Be mindful of the source you’re getting your news from.
1:45 Why having an automated plan and system in place is critical.
3:40 Be mindful of the money you’re investing and what purpose it has.
4:00 Refocus your energy.
4:15 You can’t time the market because nobody can predict what’s happening in the world – there will always be something “unprecedented” happening in the global market.
Now, let’s dive in.
When headlines start skewing negative, and you’re feeling anxious about your portfolio, there are three easy steps to follow:
1. Know your source. There was a joke back in 2008-2009 that specific news outlets were always going to report the negative. It’s as though they were scouring the world for the worst-case scenario stories and reporting them every hour on the hour. If headlines are nerve-wracking for you right now, don’t lean into finding more negative headlines. Instead, look for a more balanced news source and ensure you’re fully educated about what’s going on.
2. Have a system. When your finances are automated, and you have a plan for your money, you’re less likely to slip into a reactionary mode when it comes to market fluctuation. This highlights the importance of having a financial plan.
3. Make sure you’re allocating your investments and resources according to your goals and values. If you have short-term goals, you’re likely not funding them with investments. Investing in the stock market is a tool that can be used for long-term goals like retirement, college savings for your kids, and other “big picture” financial aspirations. If you’re allocating your investments according to your goals and values, and plan to stay in the market for the long term, you likely don’t need to over-worry market fluctuation.
Market Fluctuations Happen
You’ll notice that we’ve intentionally left out information on what “big event” in the global market spurred this video. The truth is that scary headlines happen all the time. While we can be moved to get involved or take a stand on a human level, letting the news run your financial decisions is never the right move.
Have questions? Having an advisor in your corner can help you stay calm and steady during turbulent times. Contact us today to learn more by clicking here: https://avidplanning.com/contact