If you are keeping your eye on your stocks and shares, you'll know to expect peaks and drops over the hours, days and weeks. It's a normal part of investment, and you know to just wait it out. But a bigger-than-usual dip lately could have scared you, and if so, keep reading.
Reduced Risk
Interest rates are up, there is a potential recession on the horizon and everyday essentials cost more than ever. In a cost-of-living crisis, people are taking less risks and are far more guarded over their finances. Consequently, many are abandoning their carefully-chosen investments, preferring to keep all of their money right where they can control it – in their own pocket. They don't want to gamble at this time, which is a normal reaction to a financial crisis.
This Is A Temporary Situation
More people than normal pulling out of an investment can cause a dramatic - but, crucially, temporary - dip. The value of your stocks and shares will come back up again. It might take longer than usual, even weeks or months longer, but it will come back up. Stocks and shares will never go anywhere, so you just need to trust the process and wait out this dip: as more people pull out of their investment due to fear getting the best of them, the more valuable your own investment will become.
Slow Down
The best way to stay calm during a portfolio dip is to remember all the times that this has happened before, and just keep your cool and focus only on what you are in control of. Take your eye off the numbers for a day or two. Check back in when you feel better, and don’t pay too much attention to the day-to-day fluctuations, rather the long-term trends.
Contact Us
As always, we suggest reaching out to a Financial Adviser who can help you take a clear look at your financial situation and help to create a plan for you accordingly. If you are looking for support with your investment portfolio - be that stocks and shares, bonds, real estate or anything else - or financial advice on any other aspect of your monetary future, call us on 01283 389130. You will be able to make an appointment with one of our expert team who can then help you get started on building a stronger financial future.
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