Market fluctuations, volatility, bear market, recession, and on and on…WHAT IS HAPPENING?!
As I write this post, coronavirus is a hot topic in our country and the financial markets are displaying the related panic that is occurring. This morning, the Fed reduced the Fed Funds rate by half a point to respond to the sell off that has occurred over the last week. So, how should we respond as consumers? The main question we should all ask ourselves is what EXACTLY is the purpose of the money that we have invested? Secondly, when will we need the money? If we plan on needing income from those funds in the short term, volatility has a far greater impact. If we have ample time until retirement, and our monies are slated for that purpose, short term changes in the economy are just that…short term.
Staying focused on your goals helps to keep from making emotional decisions about your money.