Similar to life, markets too can be volatile and unpredictable. The anxiety from frequently checking the Dow and S&P can be extremely exhausting. Social media and various news outlets can also really mess with our emotions and let me be clear, rash decisions are never encouraged. I always advise clients to manage the controllable variables and ride the waves while knowing your portfolio's long term plan. For example, two items to measure are your risk tolerance and time to retirement. These two items will allow your advisor to determine a proper allocation of funds for your particular plan. Your plan should be determined by your goals and the length of time you have to pursue them.
We must understand that recessions and economic downturns are part of the cycle, but if you work closely with your advisor a long term plan should be in place that takes into consideration the various market's waves. Fresh out of college I received a piece of advice from a senior advisor on the brink of retirement. He said, "Plan your work and work you plan." So, go ahead and feel free to measure the return of your portfolio against their individual benchmarks and make adjustments, use your plan to say no to frivolous spending, find a knowledgeable advisor that makes you feel comfortable, and basically work your long term plan in this ever changing world.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.