Experts provide tips: Investors do not panic in uncertain times in uncertain times

• uncertain times on the stock market as an emotional challenge for investors
• Experts give tips: This is how you keep a cool head
• Observe important investment principles even in difficult times

Violent market fluctuations and the associated uncertainty can make investors nervous. Suddenly investment decisions appear, in which one was absolutely certain, much less reliable, which can further increase fear. However, experts recommend that even in such difficult times to keep calm and gave “Marketwatch” some tips on how investors can succeed.

Push back panic: Investors get control back

“People want to find answers in uncertain times. That is why they pay more attention to outside noises, which can intensify their fear,” said financial planner Hazel Secco to “Marketwatch”. The most important thing is also to continue to adhere to the original financial plan. In order to achieve this, she advises you to reduce the focus on the inside and on this plan, for example, and to consciously put strategic, long -term thinking in the foreground. According to the expert, impulsive reactions to short -term market movements can be avoided.

According to the financial planner JW. Harris is often the reason for irrational acts in a feeling of loss of control. For example, investors can come over this feeling if they see their hard -established investment more and more melted down through negative course developments, and ultimately dissolve them from the way. In such a situation, Harri’s investors recommend the control circuit exercise to counter a feeling of control and thus counteract uncertainty, according to “Marketwatch”. Areas are identified in which you can achieve a positive difference through your own measures. During the exercise, three concentric circles are drawn: The inner circle stands for things that can be checked directly, like your own behavior. The middle circle contains factors that can be influenced, for example through strategic decisions. The external circle represents what is outside of your own control – for example, geopolitical crises or the interest rate policy of the central banks. Harris now advises to concentrate primarily on the inner circle. The outer circle, on the other hand, is “not worth time,” said the expert.

Check emotions: Why gratitude and language are decisive

Uncertainty and strong price losses on the stock market can also lead to negative spirals of thought among investors. According to the financial planner JW. Harris helps gratitude to break this cycle here. Because if you make yourself aware of what you are grateful, you will waste less mental energy on the fear of an uncertain future. “It changes the process of thinking. It replaces uncertainty by a certain degree of control”, which from the gratitude for what you have, quotes “Marketwatch” to the experts.

Financial planner David Shotwell also emphasized the news portal that increased uncertainty on the stock market does not necessarily have to lead to a disaster or a large crash. “Our brain allows us to conclude the worst possible conclusion, while reality usually hits a middle ground,” he said. Therefore, in such times, investors should not marry that everything is damn to fail, but still think and still rationally and objectively think and act. Instead of dramatic statements such as “The market is heading for a fatal crash”, according to Shotwell, a neutral language should be better used and, for example, “challenging times for the market”. “It is about looking at things as neutrally as possible. Use a language in your own head and when dealing with others, a language that is ‘catastrophic’,” continued the expert. This would help not go out from the worst and also reduce the perceived stress.

Expert recommends these general investment principles

Expert David Shotwell also has a few investment principles for investors, according to “Marketwatch”, who always apply, but should also be kept in mind even in uncertain times. So one has to make it clear that the markets are unpredictable at short notice because they are controlled by emotions and the headlines of the day. In the long term, however, the development is positive because the market of economic growth, increase in productivity and technological advances benefits. However, according to Shotwell, these long -term advantages would outweigh short -term volatility. Furthermore, according to the financial planner, it is impossible to keep the market permanently correctly. Investors should therefore build a portfolio that is suitable for all phases. The last of Shotwell’s principles states that risk and return are inextricably linked: If you take fewer risks, you also have to reduce your long -term expectations – but it may also be more relaxed due to uncertainty on the stock market.

Editor finance.net