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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.