There are a lot of things to freak out about no matter who you are or who you voted for. First thing to do is quit listening to all the “news” because it isn’t necessarily true just because you read it on Facebook. Most likely you are only receiving half-truths. This is important because you are investing for the long-haul and need to avoid responding to “noise”. There have always and will always be dramatic events and ups/downs and worries that the world will fall apart, like New Years Eve of 1999. But it didn’t.
Just don’t jump. Pause the freak-out button and rethink any impulsive financial decisions. Remember the basics. Consider the following investing standards.
- Buy low. Sell high. Diversify.
- Buy and hold. Buy quality.
- Invest regularly to smooth out the ride.
- Flow earnings from a growthy investment into a conservative one or Flow income from an income-producing investment into a growthy investment.
We do not know how the future will unfold. We do know though that the market will go up and will go down. We know that it is very hard to have high-growth and low-risk in an investment. Don’t freeze in place but choose.
- Continue forward as you are right now without any changes or move to a balanced investment strategy or investigate new investment types that may better meet your needs. You have options.
- Segment your portfolio so that each part has a different job. An efficient business is amazing to watch – each person has their job and flows smoothly with the other employees who are doing their unique jobs. Chaos ensues when no one knows their job or everyone tries to do the same job. Investments work the same way. Make sure each investment has a unique job and that your investments work together efficiently.
By Cammie Humke, Registered Representative at The Humke Group, Inc
Located at 555 S. Randall Rd in St. Charles, IL, phone 630-377-7133
The Humke Group, Inc is an independent firm. Securities offered through Cetera Advisor Networks LLC, member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered investment adviser. Summit and Cetera are affiliated and under separate ownership from any other named entity.
Opinions expressed are that of the author and are not endorsed by the named broker/dealer. All information herein has been prepared solely for informational purposes. All investing involves risk, including the potential for loss. Past performance is not indicative of future results.