What to do in case the stock market seesaws

In 2016, the market spikes that recurred throughout the year had some investors, especially the novices, feeling butterflies in their stomach. It also caused some short-sighted investors to gamble on the market fluctuations to try and catch a quick score. Financial planners in the Sacramento area issued a warning that stock investment is not for the faint of heart. 

Image source: dollarsandsense.my

Market seesaws are not uncommon. Therefore, crafting a game plan or abiding by a set of rules in such cases is needed to ensure profits are maximized in the long run. Here are some advices on what to do: ·

Take daily Dow and S&P 500 reports with a grain of salt. 

Every trading day, there is an unpredictability in the gyration of the numbers in these stock market indices. It can increase or decrease by several hundreds, but then net change after a month or two could be just 100. Predicting how the stock market would behave is a waste of time, and at times a perilous task. There needs to be a long-term outlook; experienced investors have a 10- to 20-year horizon. ·

Listen to experts. Unfortunately, rampant nowadays are doomsayers and clickbait media outlets who “predict” the collapse of the stock market or an oncoming recession when there is market fluctuation. It is better to consult with investment or financial advisors to better understand the state of the market. 

Image source: thebalance.com

Springer Financial Advisors has been able to help clients formulate an effective financial plan toward achieving their financial and life goals despite ever-changing economic factors. The company uses a comprehensive and integrated approach that results to well-informed decisions. Follow this Google+ page for more discussions about financial planning.