Market ups and downs are a normal part of investing, but that doesn’t make them any less stressful. The past few weeks have been particularly volatile, and we understand that can cause concern or even fear. Unfortunately, no one has a crystal ball to predict what will happen next or when the markets will improve, but we want to assure you we are monitoring the situation closely and will communicate adjustments if or when they need to be made.
Although you can’t control economic policy, the impact of tariffs, or stock market moves, that does not mean you are powerless when it comes to your personal finances. Now is the time stay focused on what you can control:
- A sound investment strategy. At MRK Financial, we design portfolios to weather the natural ups and downs of market cycles. From the beginning, we ensure your portfolio is well diversified, and we regularly review asset allocations and rebalance portfolios to take advantage of opportunities in both up and down markets.
- Responsible spending. Now is a good time to evaluate your household budget and optimize short-term cash flow to help you stay financially resilient. Look for opportunities to trim your expenses, like canceling unused subscriptions, shopping sales or secondhand, and buying in bulk. Put off large, non-essential purchases for when things have stabilized a bit.
- Patience & perspective. Historically, market downturns have been followed by recoveries. The S&P 500 has been positive 63% of the time over one-month periods, 75% over one year, 89% over five years, and 94% over 10 years. That means over the long-term, investing in the stock market is still beneficial. Now is not the time to panic sell, which will only lock-in the recent losses.
Market volatility is inherent in investing, but by focusing on the bigger picture, avoiding emotional decisions, and trusting in a strategy built for the long term, you can stay on track toward your financial goals. If you have questions or would like to discuss your specific situation, please feel free to call our team.