We all know there's a huge amount of uncertainty across the globe right now with the Coronavirus. Businesses are being forced to temporarily close, there's layoffs, and a slow down of commerce in most areas in the country. When things like these happen, our emotions tend to get the best of us. We all know you didn't need all seven packages of toilet paper, four jugs of hand sanitizer, 20lbs of chicken, and four cases of water! We can't help it! We're all human and we have emotions and tend to act on them in times of crisis. The same can be said about our financial and investing behavior. Here's a few tips to help you during this time of great uncertainty.
Remember Your Goals
Make sure that your investment allocation properly meets your investing time horizon and future financial goals. These are two things to always remember. If you can do these two things, it's best to let the market do its thing. The market works in cycles, this is just one of those cycles! If you haven't talked with your Financial Advisor for quite some time, this would be a time to reach out to them and double check that you're properly allocated towards your goals.
Double Check Your Finances
Check your budget to see what you're spending your money on. If you're in a situation that you fear a layoff might be in the near future, it would be best to make sure you're prepared. Always have a three to six month emergency fund saved up for situations like this. Be prepared to cut discretionary spending if it does get to this point.
Take Emotions Out of Your Investments
For those with investments, you probably have many things running through your head. Is the marketing going to go down more? Should I cut my losses? Can I time the market by selling now and buying in later? STOP! Take the emotions out of your investing! Moving to cash or decreasing your exposure to equities will not give your account the opportunity for an eventual recovery.