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5 Things to do when the Market is Volatile

Hello savvy LGBT investors! I frequently have people who are concerned about what to do when the market takes a significant drop. They get worried. They feel like they want to sell their investments and put money into cash until the market gets better. That could be the very worst choice you can make. Here’s why:

1. Market Volatility is Normal – Traditionally, the stock market has three to four drops a year that average 4-5%. It’s normal. Growth doesn’t happen in a straight line when it comes to investing. It goes up, it goes down. It goes up again.

2. If you have good investments a temporary downturn in the market isn’t anything to worry over. If your investment has good fundamentals, a good management team and a good future, DON’T PANIC. You have a good investment. The value of your investment may be down at the moment, but you know it has a solid management team. Don’t lose sight of the long term.

3. If you have your long term money in long term investments, don’t worry about day to day fluctuations. Just don’t; that’s silly. It’s like baking a cake that has to be in the oven for 45 minutes. You don’t worry because it isn’t done baking at the 15 minute mark, right? Same thing for your investment portfolio.

4. Keep your short term money in short term investments. Need money in the next year or two from your investments? Keep that portion in cash, or a CD. Then you don’t need to worry about market fluctuations.

5. Add more money to your investment! A downturn in the market is a good time to add money to your current investments! You get to buy them on sale. You like it when it was a higher price; maybe add to your positions when the price is lower, too.

photo credit: Kate Ter Haar

Sharon L. Herman AAMS, ADPA is the CEO of Silver Key Wealth Management, and affiliated with LPL Financial. www.silverkeywealth.com

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Silver Key Wealth Management, a registered investment advisor and separate entity from LPL financial.
Ms. Herman may only discuss and/or conduct transact securities business with residents of FL, MI, GA, VA, NJ, TX. www.finra.org www.sipc.org

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