This Market Is Hard To “Bear”

Even if you are heavily invested in the stock market, chances are, you don’t think of it very often. Until it crashes. And if you are on the brink of a major change in your life, the situation can be incredibly frightening.

Growing concern over China’s slowing economy and the devaluation of their currency may have caused panic on the Wall Street trading floor, but it doesn’t have to send you and your family into an emotional downward spiral. The right attitude is critical to getting through the market slump financially unscathed.

Here are a few “rules” from {My Man is Not} My Plan to help you navigate the murky waters of a stock market slump.

1. Don’t sell. This is probably the single most important piece of advice that you will ever receive. The name of the (stock market) game is long term growth.

2. Act, don’t react. Day-to-day, the stock market can be volatile. Don’t react impulsively to the highs and lows. When markets are stable, use this time to make thorough and smart decisions about your next investment.

3. Diversification is key. If a sharp market decline dramatically alters your financial situation, chances are, you’ve put too many eggs in one basket. Consider consulting with a financial planner about diversifying your portfolio when the market stabilizes.

4. Shop on sale. Not every decline is a good time to buy, but with every stock market crash comes an opportunity to find an undervalued gem.

5. Tune out. Practically every media outlet is talking about the financial slump. Hearing and reading about it every single minute can only add to your anxiety, thereby increasing your chance of making a rash decision. There are a myriad of “experts” out there forecasting the financial future and very few of them will actually see their predictions come true. Smart choices and a lot of patience are the key components of successful investing.

Take a deep breath, stay strong and ask for help from professionals.