Volatility is market's stock in trade3 of 7The old normal: You invested. Your investments grew. You relaxed.The new normal: You invest. Your investments rise and fall like Disney's Space Mountain ride, much like your blood pressure.Solution: Stay focused on the long term. Richard Ferri, founder of Portfolio Solutions in Troy, Mich., and author of "All About Asset Allocation" says retirees getting adequate income, for instance, should not obsess on daily market swings when investing. "It doesn't matter if the chickens have gotten a little skinny, as long as they're still laying half-dozen eggs a day," he says.If wild swings still have your stomach churning while investing, go with your gut -- within limits. For example, you could reduce your portfolio's stock holdings by 10 percent with more conservative securities. "It won't make that much difference to your portfolio, but you'll sleep better at night and it may stop you from selling everything," Ferri says. Related Articles:Stretch retirement incomeLow down-payment loansToo late for 529?Mortgage calculatorRelated Links:Investment goal calculatorA college investment planHome equity risksSaving in your prime advertisement
The old normal: You invested. Your investments grew. You relaxed.
The new normal: You invest. Your investments rise and fall like Disney's Space Mountain ride, much like your blood pressure.
Solution: Stay focused on the long term. Richard Ferri, founder of Portfolio Solutions in Troy, Mich., and author of "All About Asset Allocation" says retirees getting adequate income, for instance, should not obsess on daily market swings when investing. "It doesn't matter if the chickens have gotten a little skinny, as long as they're still laying half-dozen eggs a day," he says.
If wild swings still have your stomach churning while investing, go with your gut -- within limits. For example, you could reduce your portfolio's stock holdings by 10 percent with more conservative securities. "It won't make that much difference to your portfolio, but you'll sleep better at night and it may stop you from selling everything," Ferri says.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.