Do’s And Don’ts With ETFs In An Uncertain Market

When the market is rocky, it can be difficult to continue moving your exchange traded fund (ETF) portfolio in a strong direction.

The market direction is unclear and investors are left to fend for themselves. Jonathon Burton for MarketWatch has a few tips on how to weather bad markets and how to stay focused on your investment goals.

• Don’t get distracted by well-intentioned friends, the media or benchmark performance.
• Keep perspective on long-range goals and plans.
• Make sure your portfolio fits your personality and objectives.
• Use downturns to your advantage and be a prudent bargain hunter.
• Do not pay attention to your monthly statements. Time in the market is much more profitable than timing the market.
• Stay diversified.
• Do not speculate.
• Keep your portfolio in balance.

We would like to add that if you have an exit strategy, you’re set. If you have a plan and you’re sticking to it, you’ll get out before too much damage is done and focus on those areas that are performing well – and they are out there. When a fund drops below its trend line (200-day moving average) or 8% off its high, it’s time to jump ship.