In the unpredictable world of stock markets, sudden plunges can shake even the most experienced investors. Jared Levy, the Chief Market Strategist at Peak American Financial, offers some practical advice on how to stay calm and make smart moves during seasons of extreme market volatility. With his experience from past market crashes like the dot-com bust and the 2008 financial crisis, Levy shares insights to help investors navigate the current market mania.
Rethink Your Investment Strategy
Levy emphasizes the importance of taking a step back and reassessing your investment strategy during market downturns. Ask yourself if the core reasons for your investments have truly changed. Market sell-offs often trigger panic, which can lead to rash decisions. Instead, Levy suggests a more thoughtful approach: “Does this change the way that I feel about my investment?”
Taking time to reflect can help determine if market changes are just temporary fluctuations or genuine threats to your long-term goals.
Know Your Time Horizon
Understanding your investment timeline is crucial. Levy points out that retirees who need immediate cash face different challenges than younger investors who have more time. For retirees, protecting what they have is key, while younger investors might see market dips as a buying opportunity.
“If you’re a retiree… you’ve got a different problem. If you’re a younger investor or a trader, then again, these can be opportunities for you to trade or invest,” Levy explains.
Look for Resilient Stocks
Even in turbulent markets, some stocks and sectors remain stable. Levy highlights how mega-cap stocks like Google have held steady during recent market instability, which could be a positive sign. He also suggests considering longer-duration bond ETFs like TLT, which have performed well, and utilities like the XLU ETF for a safer investment.
Strategies for Those Nearing Retirement
If you’re planning to retire soon, Levy advises caution. While markets haven’t seen catastrophic declines, if you’re feeling uneasy and need your money soon, it might be time to reduce risk. “It might be a good idea to take your risk off the table,” he suggests.
Consulting with a financial professional can provide tailored advice. Levy stresses the importance of avoiding panic: “Definitely talk to a professional, definitely take your time.”
Final Thoughts
Navigating market volatility requires a balance of caution, strategy, and patience. Jared Levy’s insights encourage investors to reassess their strategies, understand their time horizon, and identify opportunities even in downturns. By staying calm and focused, investors can make informed decisions that align with their long-term financial goals.
CLICK HERE to watch Jared’s segment on Business First AM covering the recent market volatility.
Disclosures
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In addition, Peak American specializes in providing strategies and guidance for those who want to increase their chances of “winning” in retirement. We offer no-cost strategy sessions to help you design a custom strategy for your financial future. Contact us today to schedule a meeting!
