For those who are investing in the equity market, 2020 is not an average year. The dramatic drops being followed by the major indexes roaring back to highs, looks, and feels like a rollercoaster ride. For investors, the stomach-churning experience is not for the faint of heart.
We recently interviewed Paul A. Kavanagh regarding how best to navigate the challenging market. Paul has been an Edward Jones Financial Advisor in Coral Springs for the past 13 years and has over 30 years’ experience in Finance.
Stay Patient
“We can’t predict the market moves,” shared Paul, “Staying patient, disciplined, and focused on your long-term goals will
be critical.” Emotions may be a liability in investing in a volatile market. According to Paul, “By keeping your focus on the future, you’ll be less likely to react emotionally to the news of the day – and more likely to follow a long-term strategy that can work for you.”
Diversify
You have heard the saying, “don’t put all your eggs in one basket,” so you may need to diversify by spreading your eggs into multiple investment groups. You can do your own research, or work with a professional advisor who has access to all the tools and experience you will need. A financial advisor will, according to Paul, “…work with you to understand why you’re investing and your financial priorities. You’ll experience the convenience of working with one dedicated financial advisor and utilizing an established process to create personalized financial strategies, backed by advice, tools, and resources to help you reach your goals.”
Review Regularly
You should regularly review your investments. It helps to ensure your long term goals are on track and adjust to market realities. “In light of the recent performance of the stock market, this is an excellent time to review your investments and ensure that you’re on track to achieve your financial goals,” said Paul.
2020 has been a turbulent year, and with a national election coming up in November, there are many things that may perturb the market, such as policy announcements and uncertain economic forecasts due to the ongoing pandemic. Planning ahead to ensure your portfolio is doing what you want long- term is extremely important, so remember this great advice for long-term success. If you need help, don’t be afraid to talk with a professional advisor, they may be able to offer you tools and research that you are not aware of.
By Li Pan