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How to deal with market volatility

anna-jones
By Anna Jones

23rd October 2023

Market volatility

Something many investors find challenging is how to deal with market volatility. When the market takes a turn, it’s essential to keep a level head and make informed decisions, we outline some guidance below on how you can handle market volatility with more confidence.

Manage your emotions

The first step in managing market volatility is to manage your emotions. It’s normal to react emotionally to market events, but remember, you don’t have to act on those emotions when it comes to your finances and investments. If you’re feeling anxious, it’s always a good idea to speak to your financial planner for guidance and reassurance. A financial planner can help advise on past market experience, and if trends are likely to continue. They’ll also be able to tailor their advice to your specific circumstances.

Take the long view

It’s crucial to resist the urge to make impulsive decisions during market downturns. Selling when the market is down can heighten losses, potentially hindering your long-term financial goals. Unless you have an immediate need for the funds, sit tight and wait for the markets to recover. In fact, market dips can present great opportunities to invest in stocks, as this can provide you with a stable ground to return to once the market starts to pick up again. Remember, it’s not about timing the market, but time in the market.

Tuning out the noise

Next, focus on tuning out the noise. We are bombarded with news and information about the markets. But remember, the only days that truly matter in investing are the days you buy and sell. Be selective about the people, information, and news you engage with. Mass media often caters to the attention of the masses, so seek out reliable sources and filter out the noise. Your financial adviser will know what news and sources are relevant to your line of investing.

Look at the past

Looking at the history books can provide valuable perspective during times of turbulence. History has shown us that markets have always bounced back after dips, wars, crises, recessions, and depressions. It makes good sense to assume that they will do so again. Remind yourself that market volatility is a normal part of investing, and a long-term approach is often rewarded.

How to deal with market volatility

In summary, the best way to deal with market volatility is to manage your emotions, take the long view, tune out the noise, and look at the past. By following these strategies, you will be in a better position to navigate market volatility. Remember, investing is a journey, and staying focused on your long-term goals is key.

If you want to speak to one of our financial planners please don’t hesitate to contact us.

 

Important Note

The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

This article is distributed for educational purposes only and should not be considered financial advice.

If you are unsure about the suitability or otherwise of any product or service, we recommend that you seek professional advice.

The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.

Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.

If you are unsure about the suitability or otherwise of any product or service, we recommend that you seek professional advice.

Past performance is no guarantee of future performance.

The value of an investment and the income from it can fall as well as rise and investors may get back less than they invested. Your capital is therefore always at risk. It should be noted that stock market investing is intended for the longer term.

Meet the expert
Anna Jones
anna-jones
Chartered Financial Planner

Anna joined the company that later became Progeny in 2014, following a career in financial services spanning more than 20 years. The majority of this time was spent in the business development teams of large insurance companies, providing technical support and training to financial advisers.

Anna works with both corporate and personal clients, offering advice in relation to investment and retirement planning with a view to minimising tax and helping them achieve their financial goals.

Having been widowed, she is drawn to helping other women who find themselves in a similar situation with their financial affairs. Anna lives with her two children and their dog, Suki. Her free time is spent managing her son’s rugby team and engaging is as many sporting events as possible. She likes to take on a few physical challenges each year for charity, such as the London Marathon, Great North Run, Tough Mudder and long distance bike rides.

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