As phased reopening continues across the Hudson Valley and beyond, we are all coming to terms with the new reality that awaits us in a post COVID-19 world. While some things are returning to normal, many parts of our daily lives will be forever changed. All things considered, it is understandable to have concerns regarding your own finances, personal interests, dreams, and investment plans.
Our experts at Quest are here to offer some insight into how to bridge the gaps between the current global situation and your own future financial goals:
1. Keep Money In The Market
While investors balking at recessions or dips in the market often scramble to reallocate, sell, or switch money to low-yield but more predictable bonds, this kind of panic usually results in more loss than gain. It is important to work with an advisor you trust, so you have a competent guide in your corner as you prepare for the future. Resist the urge to make rash decisions; instead, form a strategy that will bring you closer to reaching your financial goals over the long term.
2. Be Future-Minded
One of the most common causes of panic for investors are loud and dismal headlines. While there is wisdom in staying vigilant, it’s important to remember that today’s headlines are not what decides success in the market; the future does. As an investor, it would be myopic to consider only the hits the markets are taking, and not anticipate the recovery that is sure to follow. Instead of being sucked into the news media, remember to focus on visualizing long-term goals and success.
3. Anticipate Recessions
A wise investor is not surprised by economic downturns. The more pragmatic and realistic your mindset is, the more fluidly you will roll with the punches. Recessions are very normal every decade or so, and many smaller dips in the economy happen far more frequently than that. It is in the investor’s best interest to keep a long-term, calm mindset about economic recession. Panic will only rob you of recovery gains.
4. Cash Is Not Always King
Another common misconception during hard economic times is that cash is king until the markets are back up. There are many investors who will start switching equities to cash when they start to take losses. While it’s always smart to keep some money readily-on-hand, you’ll do yourself no favors by keeping the lion’s share in cash. Rather than making emotional decisions based on current economic climates, consult an advisor to ensure that decisions you make responsively today do not harm your long-term goals.
The COVID-19 pandemic has left many feeling stressed and confused in terms of investments. If you’re seeking guidance or are considering making adjustments to your investing strategies, Quest Financial Services is here to help guide you! Contact us today by calling: 845.294.1313.