Bruce Smith, investment and Trust Services Manager at F&M gave us some advice on how to manage an investment profile under rough conditions in the stock market.
Some of the main causes of volatility in the markets:
- Fears of global growth slowing.
- Decline in Chinese stocks after China’s devaluation of its currency.
- Decline in oil prices
- Signs of strength in the U.S. economy
- Expectations that the Federal Reserve will gradually raise interest rates.
What investors can do to prepare:
- Have a strategy – Time Horizon, Goals, Risk Tolerance.
- Diversify – Asset Allocation of Stocks, Bonds, and Cash. What’s Comfortable and Let’s you sleep at night.
- Don’t try to time the market – Buy High/Sell Low vs. Buy Low/Sell High; “PowerBall Ticket Mentality”
- Invest regularly despite volatility – Dollar Cost Average
- Consider a hands-off approach. – Professional Investment Management
For more information or to speak to an F&M advisor, visit their website or call (717) 441-0223