6 Things You Can Do During a Turbulent Stock Market

If you’re like most, recent news about the continued spread of COVID-19 (coronavirus) and the negative impact on the market has you concerned about the impact on your retirement savings. Bouts of market volatility are an unnerving, but normal, feature of long-term investing. They’re not fun, but you can expect to see market declines periodically throughout your investing career. Yes, it’s hard to sit still when the market is sliding. You can’t help but think, “Should I be doing something?” Every investor is different, but here are a few things we recommend to help you weather the storm.

1. Focus on your health first. Do what you can to protect yourself and your family. Your health is more important than your portfolio.
2. Gain perspective. As troubling as this scenario is, underlying economic fundamentals in the U.S. remain strong.
3. Make sure you have a diversified portfolio. Volatile markets can reveal that the portfolio you thought was appropriately diversified in fact isn’t. If you haven’t looked at your portfolio recently to ensure that the mix of asset classes you’re invested in matches your target allocation, now is a good time to revisit it. Consider reviewing your risk tolerance and make sure the asset allocation of your portfolio matches the level of risk you’re willing to face in a volatile market. The priority now is to keep a long-term approach and take potential short-term market changes in stride.
4. Stay the course. Don’t try to “time the market”. Time in the market is better than “timing the market”.
5. Take the long view. Markets typically go up and down, and you’re likely to experience several declines during a long investing career. But even bear markets, that is a period when the market fell by more than 20%, historically have been relatively short when compared to bull markets. Timing the market’s ups and downs is nearly impossible. You would do well to try and ignore the noise and stay focused on your plan.
6. Talk to a professional. You are not alone, we’re here to help. Please contact us if you still have questions or concerns, we would love to talk to you.

IMA Wealth, Inc. (“IMAW”) is an investment adviser registered with the Securities and Exchange Commission, a broker dealer, member FINRA, and an insurance agency. We provide investment supervisory services and discretionary money management for individuals, corporations and foundations, as well as company retirement plan consulting. IMA Wealth, Inc. is a subsidiary of The IMA Financial Group, Inc. (“IMA”). Material presented herein is gathered from what we believe are reliable sources. It is not guaranteed to accuracy, may not be a complete discussion of all material facts, and is not intended as the primary basis for investment decisions. All content is for general information purposes only and does not take into consideration your individual circumstances, financial situation or needs, nor does it present a personalized recommendation to you. Content is not intended to provide legal, accounting, tax, ERISA, or investment advice. No investment strategy, such as diversification or asset allocation, can guarantee a profit or protect against loss in periods of declining value. Past performance is no indication of future results. 03/12/2020