As you know, market downturns and bouts of volatility aren’t rare events—even those that grow out of health crises such as the SARS (severe acute respiratory syndrome) outbreak in 2003 and the Zika virus outbreak in 2016. One key to getting through such turbulent times is to try and understand that these market conditions don’t last forever and that markets can recover more quickly than you might think. Remember that investing is long term, and takes into account that there might be some market bumps along the way.
Of course, there are no guarantees when it comes to the markets. A market rebound can take days, weeks, or even months. The new coronavirus has dealt a significant blow to the economy of China, an economic leader and an essential link in the global supply chain. Nonetheless, if your investment plan is sound, and you continue investing through corrections, you can find a way to stay on track to reach your long-term financial goals.
Here are 4 tools to help you along the way
Understanding market downturns
Gain a better understanding of the types of market declines and how to best respond to them.
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Smart things to do (that many won’t) in a down market
Understand the actions and attitudes that are under your control to weather market volatility.
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Short-term volatility: What’s your move?
Market reactions to previous health crises can offer useful lessons today.
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Beat the short-term market jitters?
Keep market swings in perspective by taking a long-term view.
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