When we look close throughout the history of the stock market, one thing becomes apparent: Bear markets don't last forever. If you've only been in the stock market for the past 10 years, when we’ve only seen an upward trend, it's important to avoid tunnel vision and fear.
During down markets and volatility, you should hear the most from your financial advisor. Through these uncertain times, clients should expect their broker to put their nose to the grindstone, but too often they stick their head in the sand.
To make the most of down markets, there are some very basic rules that we advise our clients to follow during turbulent times. Your advisor should help you see opportunities to make the most of your portfolios.
The balance of risk and reward must always be kept in mind, but as Warren Buffett’s famous saying goes, “Be greedy when others are fearful.” Buffett has been successful following a long-term outlook for American businesses that can withstand a shock in the market and looking for investments that you can buy at a bargain.
If your broker has not developed a strategy to help overcome this market downturn based on your particular needs and objectives, your broker may have their head in the sand.
Tips for a Down Market
1. Keep long-term goals in mind
2. Keep your strategies simple
3. Look for buying opportunities
4. Make tax-advantaged moves
5. Don’t be emotional
Mark A.Johnson is a financial advisor with Heartland Wealth Management, 3351 W. Rock Creek Road, Suite 130, Norman. He can be
contacted at 561.7051 or Mark.Johnson@heartlandwm.com.