Downturns\nare not rare events and statistics favor staying the course. The data below\nspeaks volumes, showing in the year following the trough (low point) of a bear\nmarket, the returns were on average 47%. This is the \u201cpot of gold\u201d waiting for\nyou at the end of this inverted rainbow.<\/p>\n\n\n\n 2. \u201cUnfriend\u201d the financial news.<\/strong><\/p>\n\n\n\n When\nthe markets are volatile, the news cycles never end. To be clear, you do want\nto be knowledgeable about what\u2019s happening in your portfolio, but you don\u2019t\nwant to overdo it. You don\u2019t need hour-by-hour updates on your investments any\nmore than you need hour-by-hour updates on your favorite sports team. Watching\nmore closely doesn\u2019t improve the results. <\/p>\n\n\n\n Consider\nlimiting the financial information you receive by social media, TV, and\nnewspapers. Regardless of the medium, they thrive on negativity and these bits\nof information have a cumulative effect. The more you absorb it, the more you\nrisk anxiety, fear, and even panic. As any good financial advisor will tell\nyou, panic leads to more losses than volatility. <\/p>\n\n\n\n 3. Leverage your \u201cfinancial\nfoursome\u201d in times of stress.<\/strong><\/p>\n\n\n\n Investing\nin the stock market involves risk. We all know that going in, but it\u2019s only\ntruly tested when the markets become volatile. It\u2019s normal to feel anxious,\nconcerned, worried, or even fearful. This is precisely why you want to work\nclosely with your \u201cfinancial foursome,\u201d which includes your tax accountant,\nyour estate attorney, your mortgage broker, and your financial advisor. If you\ndon\u2019t have a relationship with one or more of these professionals, your advisor\ncan provide you with their suggestions.<\/p>\n\n\n\n Each\nof these professionals provides a different perspective, not only for\ncapitalizing on opportunities but also for keeping yourself level-headed. If\nyour \u201cfinancial foursome\u201d is lacking in some area, leverage your financial\nadvisor for recommendations. They are likely well-connected to the best\nproviders in the area.<\/p>\n\n\n\n 4. Take your investment strategy\nfrom \u201cvapor to paper.\u201d<\/strong><\/p>\n\n\n\n If\nyou want to stay on track with your investments, regardless of what the markets\nare doing, you should commit them to writing. An Investment Policy Statement\n(IPS) is a document drafted between you and your financial advisor that\noutlines general rules for meeting your investment objectives. It includes\ncriteria for monitoring performance, addressing risk, and communication between\nyou and your advisor. Your Advisors can help you decide when to rebalance based\non your goals as well. Without written objectives and guidelines, your\ninvestments are subject to the whims of your emotions, and how you \u201cfeel\u201d you\nshould be investing.<\/p>\n\n\n\n 5. Re-assess your \u201cfinancial pain\ntolerance.\u201d<\/strong><\/p>\n\n\n\n You\nprobably took a risk tolerance questionnaire with your advisor years ago and\nmaybe long forgot about it. Now is a great time to go through this exercise\nagain. You\u2019re older now, your life has changed, and your risk\/pain tolerance\nlikely has as well. <\/p>\n\n\n\n Many\nfactors contribute to individual risk tolerance, including age and short- and\nlong-term financial goals. Volatility can present the perfect opportunity to\nrebalance. Work together with your advisor to find the ideal balance of\ninvestments to suit your comfort level.<\/p>\n\n\n\n Final Thoughts<\/strong><\/p>\n\n\n\n Remember,\nnow is a moment to be cautious, not a moment to panic. If you\u2019ve worked hard\nwith your financial advisor to create a financial plan, stick with it.\nHistorically, recoveries have rewarded patience. If you\u2019re thinking about\ntiming the market, remember that knowing when to get out is only half the\nbattle; you also need to know when to get back in. Staying invested for the\nlong term is far more likely to yield a favorable outcome. <\/p>\n\n\n\n If\nyou\u2019re concerned about recent volatility and have not heard from your current\nadvisor, contact us to schedule a complimentary second opinion. We can review\nyour current investment strategy, portfolio, risk tolerance, and Investment\nPolicy Statement and decide if any changes are necessary. We\u2019re here to help.<\/p>\n\n\n\n References<\/strong><\/p>\n\n\n\n Tools for Navigating\nthe Coronavirus downturn<\/p>\n\n\n\n![\"\"](\"https:\/\/www.ayurfinancial.ca\/wp-content\/uploads\/2020\/04\/Canadian-AOTM-Graph-1024x962.png\")
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