Sometimes I look at my investment portfolio and think “damn”.

Other times I look at my investment portfolio and think “damn”.

The last few days have been the latter. And by that I mean, the markets have been getting crushed and so has my portfolio.

So what should I do in this situation?

a) Cry in the streets

b) Panic-sell everything

c) Text my high school crush and confess my love since everything is coming to an end anyway

d) Relax

If you picked anything aside from d), this article is for you.

Focus on the long term

Investing is a marathon not a sprint. There are going to be days when the markets are crazy and your investments all look like they’re on fire. But that is inescapable!

Over the past 20 years, the S&P500 has gone down by 10% a year about half the time. But over that same period the S&P500 has delivered ON AVERAGE 11% per year.

So should I just time the market and wait for it to go down then buy in?

Nope, be consistent

Instead of trying to time the market perfectly (good luck with that), just invest a fixed amount at regular intervals. This strategy, known as dollar-cost averaging, allows you to purchase more shares when prices are low and fewer when prices are high.

Over time, this approach can lower your average cost per share and reduce the risk of entering the market at a peak.

Check out what would happen if you missed the best days in the market when trying to time it:

Alright, so pick one thing and buy it regularly…right?

Not quite - diversify

Diversification is one of the best ways to manage risk. By spreading your investments across various asset classes—stocks, bonds, real estate, and even cryptocurrencies—you reduce the potential impact of a downturn in any one area.

The U.S. stock market may have done well in the past few years, but does that mean it’s going to be the best moving forward? Maybe not.

A well-diversified portfolio can help smooth out the bumps along the way.

And last of all….

Take a breath

Investing can be stressful sometimes! Especially if you don’t follow the tips above. It’s good to stay informed, but checking your investments every two minutes is not good for your sanity.

Find some good resources to keep you informed (wink wink) and don’t panic over every 14 year old on TikTok predicting a market collapse.