Survival Tips for Stock Slips
Over the years, I have learned a few lessons as stock market interruptions worry us all.
Here are some useful thoughts during this latest coronavirus concern:
- Consider taking a break from news media.We suffer more from an infodemic than we do from a pandemic. The media can be misleading at times - sometimes sensational. The current 24/7 news coverage on the coronavirus (COVID-19) can lead us to think the virus is the only thing on the planet that matters. Remember to be careful getting news coverage from social media sources.
- Remain goal oriented.We are all hard wired as individuals to think of future threats and immediately escape from the fear. A stock market fall may have you on edge, but if your long-term goals didn’t change today, your investments shouldn’t either.
- Spend your life wisely.When the economy slows, it can lead to a recession. As interest rates come down, it gives us all an opportunity to look at our budgets. Refinance debt at lower interest rates. Cut your expenses. Live on less. It is a great time to get your spending in order.
- If you have cash on the sidelines, put it to use.You don’t want to regret not buying stocks when they are down. Buy on the dips. Warren Buffet said it best, be “fearful when others are greedy and greedy when others are fearful.” Try thinking like a contrarian.
Although we cannot predict the future, we have survived similar occurrences before. The question isn’t if COVID-19 will end, it’s when.
Stay calm, turn off your TV’s, perhaps go for a walk. And of course, for now, stay away from large groups, wash your hands religiously, and stop touching your face.