Steps to take after the recent stock market correction
Four steps if you are feeling nervous about the markets
1. Remember that Short Term Needs and Investing Do Not Mix.
2. Buy a Fixed-Income Ladder.
3. Stop Tracking the Market.
4. IF All Else Fails, Try Something Less Drastic.
The steps for a sound financial future remain remain in your hands. Remember the stock markets, over time, have a high likelihood of appreciation, regardless of your opinion of the president.
You want to settle upon a target investment allocation that under dire circumstances you would not abandon. All of the formulaic approaches may be pointing toward 70 percent in equities, but it’s not the right answer if that level of risk in a very poor market would cause you to sell. That one poor decision could delay retirement by years.
Investments that may be due for a decline
Most investors aspire to superior portfolio performance. It’s what drives us to seek alpha, the additional return of a particular investment over its asset class. But alpha isn’t necessary to surpass your fellow investors. By keeping in mind the 3…