Managing Emotions and Expectations During COVID-19 Market Uncertainty
By Maura Schauss, CFP®
Riding the highs, and experiencing the lows, it is the way of the investment market. However, what if we told you that the key to sound and quality investing is learning how to keep it cool when the market is in turmoil? Yes, this includes our markets today, where Coronavirus has caused a shocking amount of volatility. Let’s look at some of the tools that can help you manage your emotions and expectations during market uncertainty.
Take Some Time to Relax
When you first open your phone or computer, you might start to freak out with the volume of information on the Coronavirus pandemic. Remember, news outlets are focused on today. While this is an extremely concerning medical crisis, it is important to remember both on the medical and on the financial front, that there will be a recovery. Focus on staying healthy mentally and physically. This will help you to make the best financial decisions. No matter if the market is a bull or a bear, changes can significantly impact you. When you find yourself contemplating a change, consider taking a moment to pause and relax. A couple of our favorite ways to relax are to do some deep breathing exercises, get in a workout and even take a walk. Online workout videos can help you get moving in the comfort of your own home. Taking some time before sending that email or picking up the phone will make the difference between an emotional decision and a smart decision.
Remember the Past
The stock market is nothing but repetitive, and it is part of the reason that experts can predict what will happen. So, let’s take the 2008 recession. The market started to tank, and investors were panicking. However, within a few months, the stocks were back to normal, and the market corrected itself. No matter the issue, the market returns to normal, that is what history has taught us. If you can remember that the market will always correct itself, even in the wake of COVID-19, you will be well on your way to managing your emotions and expectations during market uncertainty.
Depend on Your Financial Advisor
You have trusted your financial advisor through the good times, so why would that change when the market takes a bit of a downturn? Your financial advisor will be able to navigate the choppy seas and ensure that your money comes out stronger. They are the financial experts, and no matter what is happening on the market, they are there for you. Remember to trust your financial advisor, and you will be able to manage your emotions with ease.
When it comes to managing emotions and expectations during COVID-19 market uncertainty, these are three essential tools that you can use. You should look to take some time to relax; you should remember that the market always corrects itself over time; and that your financial advisor is there for a reason. Using these tools will help your overall investment strategy and help you avoid emotional investing!
About Washington Wealth Advisors
Washington Wealth Advisors is an independent registered investment advisory firm serving high net worth families and small businesses. We focus on holistic financial planning and comprehensive investment management. Leveraging our core strengths of unbiased, active investment management together with a detailed annual financial planning capability, we serve your comprehensive investment and financial planning needs.