So far 2016 has shown us we can be certain about one thing: We are uncertain about everything.
Many unanswered questions loom over us causing increased levels of volatility. When will oil prices stabilize? What is the future of the Chinese economy, and what impact will that have on the US and other countries? Will our federal reserve be able to successfully navigate the current global conditions and adjust interest rates accordingly? With these questions and more unanswered, we can only expect uncertainty for the unforeseen future. The question then becomes, “What do I do now?”
Although there may not be much we can control on a macro level, there are a few things we can control when it comes to making smart financial decisions during times like this. Here are a few tips to keep in mind as you respond to our current economic conditions.
- Keep your eyes straight ahead. It’s important to remember successful investing is forward looking. Don’t fall into the trap of believing future performance is based on historical results. This is not to say you should ignorantly hold declining investments, but more of a caution not to buy or sell based solely on recent market conditions.
- Invest for the long-term. Sit with your financial adviser and determine your own investment goals, and the road map you want to follow for a successful retirement – that then STICK TO IT! Economic ups and downs will come and go. Your job simply becomes to put your head down and weather the storms.
- Now is the time to invest. The principle is timeless and true: Buy low. Sell high. It’s times like these that actually afford opportunity for the well informed and prepared. Instead of taking the outlook of doom and gloom, keep your mind open to opportunities, and you’ll see diamonds where everyone else sees coal.
By following these tips, I can’t promise uncertain times won’t affect you, but I can promise you’ll feel more confident and assured by knowing that your personal plan is in place to handle the ups and downs that come our way.
DISCLAIMER: I am not a certified financial planner. The tips above are strictly my opinion and it is recommended that you contact a certified financial planning professional before making any investment decisions. Head over to Penny Power for more detailed investment advice and strategies or attend Deborah Stavis PinkPetroTV program on February 2. Register here.