{"id":13832,"date":"2020-07-29T00:07:14","date_gmt":"2020-07-29T06:07:14","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=13832"},"modified":"2020-07-29T00:07:14","modified_gmt":"2020-07-29T06:07:14","slug":"essential-coping-strategies-during-irrational-markets","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2020\/07\/29\/essential-coping-strategies-during-irrational-markets\/","title":{"rendered":"ESSENTIAL COPING STRATEGIES DURING IRRATIONAL MARKETS"},"content":{"rendered":"<p class=\"p1\"><em>By Kristin Hovencamp<\/em><\/p>\n<p class=\"p2\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-13834\" src=\"https:\/\/woodriverweekly.com\/wp-content\/uploads\/2020\/07\/Kristin-Grey2-400x600.jpg\" alt=\"\" width=\"400\" height=\"600\" \/>Twentieth-century economist John Maynard Keynes observed, \u201cMarkets can remain irrational for longer than you can remain solvent.\u201d In 1996, then-Federal Reserve Chairman Alan Greenspan suggested: \u201cirrational exuberance\u201d affects asset values. Today\u2019s markets have rallied and tumbled, reminding investors that we cannot \u201ctalk markets down,\u201d nor can we accurately time them.<\/p>\n<p class=\"p4\">Whether you are growing your wealth or preserving it, here are practical investor coping strategies for today\u2019s market environment.<\/p>\n<p class=\"p6\">Remind yourself why you decided on your current financial plan and investment portfolio.<\/p>\n<p class=\"p6\"><span class=\"s1\">Take a deep breath and wait until the market calms down.<\/span><\/p>\n<p class=\"p6\">Market timing is a low-percentage winner. You cannot pick the market bottom.<\/p>\n<p class=\"p6\">Stop looking at your portfolio and second-guessing yourself.<\/p>\n<p class=\"p6\">This, too, shall pass.<\/p>\n<p class=\"p6\">If you feel like you absolutely must do something, consider these steps:<\/p>\n<p class=\"p6\">Review the holdings in your entire portfolio.<\/p>\n<p class=\"p6\">Ensure you can meet your current liquidity needs and implications of future cash flows.<\/p>\n<p class=\"p6\">Perform an ongoing assessment of investment weightings and risk exposure.<\/p>\n<p class=\"p6\">If you are inclined to increase your financial knowledge, create a stock wish list based on what you know best, and conduct your own fundamental research on the potential holdings. Former Magellan portfolio manager Peter Lynch explains his investment philosophy: \u201cThe best way to invest is to use your specialized knowledge to home in on stocks you can analyze, study them, and then decide if they are worth owning.\u201d<\/p>\n<p class=\"p6\">Once market volatility subsides, be prepared to make rational, goals-based decisions about your portfolio\u2019s future diversification of risk.<\/p>\n<p class=\"p4\">Think of this time as a learning moment and be proactive in shaping your portfolio\u2019s future asset allocation and investment lineup. Having a long-term financial plan in place will give you reassurance, no matter how irrational the markets behave.<\/p>\n<p class=\"p7\"><span class=\"s2\"><i>Kristin Hovencamp is an investment executive and director of business development with HAZLETT WEALTH MANAGEMENT, LLC, which is independent of Raymond James and is not a registered broker\/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA\/SIPC. All investing involves risk, including the possible loss of principal amount invested. No investing strategy, including rebalancing or dollar-cost averaging, can guarantee your objec<\/i>tives will be met. 675 Sun Valley Road, Ketchum, Idaho, (208) 726-0605. HazlettWealthManagement.com<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Kristin Hovencamp Twentieth-century economist John Maynard Keynes observed, \u201cMarkets can remain irrational for longer than you can remain solvent.\u201d In 1996, then-Federal Reserve Chairman Alan Greenspan suggested: \u201cirrational exuberance\u201d affects asset values. Today\u2019s markets have rallied and tumbled, reminding investors that we cannot \u201ctalk markets down,\u201d nor can we accurately time them. Whether you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[2,16],"tags":[],"class_list":{"0":"post-13832","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commentary","7":"category-finance"},"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/13832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=13832"}],"version-history":[{"count":0,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/13832\/revisions"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=13832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=13832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=13832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}