Over the last couple of weeks, the stock market has been going up and down like an elevator.
You see, before the current wave of volatility, we enjoyed steady interest rates and other things like not having Trump in office. We were rebuilding from the recession and all seemed cool, but now things are shifting. This trend is nothing new, but 45 and the White House Temp Agency have things going crazier than what we’re used to.
Let me explain, the stock market rises and falls like the tide of the ocean. The thing is how much that joint has fallen. That’s what’s got folks nervous like waiting on W-2s.
When the stock market crashes or turns “bear” here are 4 key things to remember:
What’s the core message?
Don’t panic! Many of those deemed wealthy or comfortable have seen a swift hit during a recession or crash. The thing is that they focus on the long term. While focusing on the long-term you watch your monies and investments. If you have been through a hit before – pull up that portfolio statement from those hard times and analyzed what changed and plan from there. While we can’t fully determine how, when and for how long things will be impacted – it is good to create a strategy. Failure to plan is planning to fail! Oh, wealth building is a marathon – not a quick sprint around the track!
What’s the eh?
Your pension, 401k, 403b all of that was impacted. Take a look at it now. I know it might hurt, cha. Look it. Why? So when the stock market bounce byke you will be able to see your gainz like you been hitting weights.
What’s the yeeeaaah?
Shawty, this is the time when you have a savings account for level ups like dis. Like even Amazon is on sale. Yeah, Amazon and all dem. Even mutual funds, if that’s your ting. Also, Index Funds. Yo, IFs are the only IF I rock with. You will see compound interest here. Smoney.
What wasn’t impacted?
You can invest in stuff that isn’t tied to the market. Like your life insurance policy. Yes. Did you know that the affluent/rich stack their money in life insurance policies? Cash benefit, death benefit.
So, go look at what you ‘might have lost’. 9 times out of 10 you didn’t lose how much you initially invested, more than likely the dividend.
What are some ways that you can prepare for investing in stock during a down turning market?
Glad you asked. Check these tips out:
- Slowly build: Start a savings account to start flipping money when a potential ‘lick’ or level up comes. Rather if it is stocks or just a damn good deal on something. This allows you to buy without hurting your budget. No robbing Peter to pay Paul. Save when the wave turns.
- Play the field: Create a “kill list” or watch list of stocks you want to purchase. Set Google alerts, watch them like you watch your ex IG/FB.
- Keep your heart 3 stacks: BE calm when drops happen. Investing is a marathon, not a sprint. Lurk lightly.
- Silently watch: Research. Simple as that.
- Execution is Everything: Actually start investing. Don’t watch from the outside of the club, actually pay to get in. You don’t need bank to make bank. Scale up. All companies started small. Think of your smoney the same way
While many things can trigger a market crash – from 45 having Twitter fingers to a major company either performing great or lackluster; what you need to remember is how to prepare. Again, go look at your portfolio to understand how your current holdings perform during high and low key moments. Do not be afraid to buy during a ‘red sea’ among the markets. If you see where some companies are performing poorly (vs their 1-year low), then take some of those savings and snatch them up. A bear market can almost be seen as a Black Friday type of sale! Make a list, check it twice and save for the purchase.
Who are some companies on your purchase list?