January 12, 2021
Help! My Retirement Portfolio Collapsed
If you have found that your stock portfolio has lost a substantial amount of value recently, you certainly are not alone. We are currently facing a serious economic downturn that has been worse than anything that has happened in recent times. Luckily, there are steps that you can take to lessen the blow of difficult economic times. Here are a few tips that investment experts recommend that retirees take during economic downturns.
1. Don’t Sell Your Stocks During an Economic Downturn
Don’t sell stocks during an economic downturn unless there are indications that the company you’ve invested in could go under in the near future. That’s because selling your stocks during a downturn will put your investment portfolio in the red right away, but it’s highly likely that your portfolio will recover if you give it enough time to do so.
2. Buying Stocks When Prices Are Low Can Be a Good Strategy
While many people avoid getting into the stock market during an economic downturn, buying stocks when prices are low could be a good strategy. Many investment experts believe strongly in buying low and selling high, and buying stocks during an economic downturn can be a great way to do that.
3. A Diversified Investment Portfolio Will Be More Stable During Tough Times
If you diversify your investment portfolio, your investments will be more stable than they would be otherwise. That’s because one or even a few companies could fail. However, the chances of a large number of different companies failing are much lower. While diversifying your investments is important anytime, this is especially true during economic downturns.
4. Despite an Overall Downturn in the Economy, Some Investments Will Continue to Do Well
While the overall economy is in a bad place, there are some investments that are doing great. For instance, investments that are related to video conferencing and online chat services are doing exceptionally well. However, this is not the only example of the types of services that are doing great now. Companies that monitor stock prices are doing very well these days as well, and many companies in the healthcare sector have also recorded high profits.
However, there are plenty of other investments that will do well, such as investments in companies that provide essential services. Companies that run supermarkets are excellent examples of companies that offer essential services. However, there are many others that you can choose from as an investor.
5. Monitor Your Stocks Frequently
Make sure that you monitor the prices of your stocks as frequently as possible, which will help to ensure that you don’t miss out on any opportunities. This can help you to determine when it is the right time to switch to other investments if necessary. As a result, you can take steps to protect your portfolio more easily. Luckily, many online investment platforms make it possible to track your investments from your laptop or even from your mobile device.
Whether you’re thinking about retiring soon or sometime in the future, now is not the time to panic about your retirement portfolio. Even if the economy is doing poorly, these are ways that you can protect your investments.