Market Tanking? Safety Measures from the Finance Experts at Collaborative Consulting

It’s easy for most investors to stay calm when the market temperatures are as mild as they seem right now. While the market is not tanking as you read this piece, acting on rash fear rather than rational resolve during market downturns can sabotage solid plans – which is why preparation is key. The financial advisors at Collaborative Consulting offer some timely actions to take when financial markets are tanking – and even when they’re not.

John Milner, Collaborative Consulting’s Managing Director, urges his clients and other investors to never act in fear. Even when panicking becomes the instinctive course of action during a market crisis, it’s not a smart move to indulge in it. Instead, you can redirect any nervous energy by playing a relaxing sport such as golf, satisfying the itch to act without you having to overhaul your investments at potentially the worst possible time.

While projecting your energy onto something else may be useful, perhaps looking at solid academic evidence will also help you ignore any self-doubt during market crises. According to decades of evidence, capital markets’ long-term trajectories have been upward, so if you sell when markets are down, you’re likely to lock in a permanent loss than come out ahead.

Ignorance can be bliss – don’t fixate on the breaking news and sensibly manage your exposure to them. It can be difficult to retain your perspective once you’ve become mired in the minutiae.

Last but not the least, always revisit your investment plans – or make some. Your investment plan should be carefully allocated to various sources of expected resources and globally diversified to dampen risks. In the words of Larry Swedroe, MBA and internationally-acclaimed financial author, “The key to successful investing is to get the plan right and then stick to it.”

Collaborative Consulting’s investment plans are about working together with the client to build a consistent, above average edge for your portfolio without the high risks normally associated with increased returns.

To start a smart and primed investment journey, reach out to the best Auckland financial advisors today by visiting the Collaborative Consulting website at https://cclonline.co.nz/.