Shutterstock
The author is not pictured.
With the coronavirus continuing to spread, markets around the world are plummeting - and that means any investments you may have are likely suffering.
Personally, my investment portfolio has taken a hit. However, I'm doing my best to avoid making any changes to my investment plan - and a guided meditation is helping me get through each new gut punch. Here's how and why I'm leaving my investments untouched during this tumultuous time.
The news surrounding the coronavirus can be scary, and the stock market's nosedive is almost equally unnerving. As a young investor, I've been slowly building my portfolio dollar by dollar. Along the way, I've done my research to ensure that I'm investing in funds that will allow me to build a balanced portfolio.
As I slowly built my investment portfolio, the market happened to be steadily growing. The upward trajectory of my investments gave me the confidence to keep going.
But I knew that at some point, the market would drop out from under me. Every piece of investment advice I received was tempered with the harsh reality that I needed to be prepared for my portfolio to take some hits over time.
Well, that time has come. The market is dropping, and I've steeled myself to watch my portfolio sink to new lows. I prepared myself for this dark chapter of stock market history by building a diversified portfolio and realizing that this drop was inevitable before I ever invested my first dollar.
I am planning to continue investing for the next couple of decades, and I knew that this drop was going to happen at some point. In fact, my portfolio will likely experience several more drops over the course of my investment career. Volatility is nothing new.
Even with such steep declines, the only logical thing to do is hang on for a long ride. The worst thing for my portfolio in the long-term would be to sell off my investments at rock bottom prices. The best thing to do is simply stay in the market and wait for the recovery.
It is one thing to say that you will ignore the nosediving market, it is another to actually weather the storm and make it through without selling off your portfolio at a loss.
The first reason that I'm able to watch the prices drop without panicking is that I am a young investor. The funds I have invested in the market are intended to fund my retirement, which is decades away at this point. At 24, I have plenty of time to rebuild even if this downswing in the market lasts for a while.
The second reason that I am able to tune out the panic and stick to the plan is that I am not relying on my investments for income at the moment. In addition to the income I earn as a writer, I have an emergency fund on hand. My family and I would be able to survive for at least a year on the savings that I've set aside.
For me, the best way to stick to my plan is to simply avoid looking at my portfolio. Instead of checking in to see the damage, I am keeping myself busy and avoiding that chore.
I did make the mistake of checking my portfolio earlier this week, but with the help of financial expert JL Collins' guided meditation for when the stock market is dropping, I closed out my account without altering my investment strategy. The 11-minute meditation helped me remember to breathe - and reminded that the "ride may be volatile, but the market always goes up over time."
I highly recommend checking out this reassuring mediation if you are considering making changes to your investment strategy right now.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
Stock markets stage strong rebound after 4 days of slump; Sensex rallies 599 pts
Sustainable Transportation Alternatives
10 Foods you should avoid eating when in stress
8 Lesser-known places to visit near Nainital
World Liver Day 2024: 10 Foods that are necessary for a healthy liver
I was panicking about the stock market drop, but a guided meditation helped me calm down and close my investment appSlack stock falls as much as 20% after it reported earnings that show slowing growth and weaker guidance than expectedThe US stock market has now wiped out the entire $11.5 trillion of value it gained since Trump's 2016 election victoryThe single smartest thing to do with your investments when the stock market slumpsCopyright © 2024. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
Next Story
