Are market swings making you anxious about your investments? You’re not alone. Many investors feel overwhelmed by market volatility. One of my retired clients who typically enjoys managing her portfolio recently told me the constant fluctuations leave her feeling stressed. If you’re in a similar situation, there are ways to manage your emotions and make smart decisions, especially during turbulent times.
Spot the Emotion Behind Your Moves
Ever catch yourself making decisions based on fear? Start by recognizing when emotions drive your financial decisions. My client found herself reacting to every market dip, unsure of what to do next. It’s easy to let emotions take the wheel when the market resembles a rollercoaster. Instead of making impulsive decisions and changing your tactics every time the market dips or rises, take a step back. Understand that your emotional state may be influencing your choices more than you realize. Once you acknowledge this, you can move forward with a clearer mindset.
Make Small Moves That Pack a Punch
You don’t need to flip your entire portfolio upside down to regain control. Together, my client and I reviewed her portfolio and found a stock that no longer aligned with her goals. Selling that stock immediately reduced her stress and brought an additional tax benefit by offsetting gains elsewhere. Sometimes, small, strategic moves can make a big difference, restoring your confidence without drastic changes.
Stay in Touch with Your Advisor
Talking regularly with your financial advisor is one of the best ways to stay grounded. Open communication helps ensure that your investment strategy stays aligned with your goals and emotions. Ask your advisor questions about your portfolio’s risk level or how external factors may impact your investments. Regular conversations give you the confidence to navigate turbulent times with a clear plan.
Don’t let market stress hold you back. By recognizing emotional triggers, taking small steps, and staying in contact with your advisor, you can regain control of your finances. Want personalized advice on how to lower stress from your U.S. investment portfolio? Schedule a free Cross-Border Financial Evaluation at profile-financial.com/call.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published January 28, 2025.