How to Handle Stock Market Declines

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Today’s Question:

If you’re someone that keeps a close eye on the stock market, it’s going to be impossible to miss the dips. That’s especially true when the market drops close to 10 percent, which happened recently. This is never easy to stomach but understanding how common this is and what you can do to offset these losses will ease your mind.

Confidence Corner

The summer of 2019 has seen quite a bit of volatility in the stock market. Pretty much anywhere you look there’s news about a large dip.

When you see it, the natural reaction is to think about how much value you’ve lost in your retirement portfolio. But it’s important not to dwell on these periods of decline because they’re much more common that you might think.

In this episode of The Financial Answer podcast, we’ll talk about the recent drop and why it’s just a part of investing in the market. Every year brings some sort of ‘signifcant’ drop but seeing the big picture will help keep you from making any drastic decisions.

It’s also times like these that show us the value of diversification so we’ll discuss some ways to offset the market so that portfolio only suffers limited losses.

Listen to the full episode to hear everything we discuss or click on the timestamps below to skip ahead to specific topics.

[0:54] – It’s been a big week in Nathan’s life.

[1:47] – Ways to fight the fears during a market decline.

[2:38] – Loss of money creates a stronger reaction than earning money.

[3:41] – Market declines are part of investing.

[4:41] – 10% dips every year are common, even during this 10-year bull run.

[5:33] – You only have to go back to December 2018 to see the last big dip.

[7:12] – Diversification matters and this is a time you really see why.

[9:03] – Best performing assets vs the worst performing in recent years.

[10:33] – How to counter-balance your stocks with something less volatile.

[11:33] – Why every portfolio should have fixed income.

 

A Point Of Wisdom:

 

Related Content:

PODCAST: How to Manage the Stress of Retirement

PODCAST: Bouncing Back

 

Additional Resources:

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Your Guide:

Nathan O’Bryant – Contact

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