Need to Know: Navigating Stock Market Uncertainty

March 23, 2018


If you’re on the east coast, chances are you’ve been dealing with some truly unpredictable weather. In fact, most of us—wherever we live—have had to handle some climate curveballs these past few months.


The same can be true for the stock market. Sometimes you’ll deal with sunny skies, and smooth waters — at other times, the skies will churn and whirl with unpredictability, much like a storm, or even worse, a hurricane. Lately it seems like uncertainty is the norm, and while we can’t predict the future of the stock market, that doesn’t mean there aren’t ways to navigate through tough times. Here’s what you need to know about navigating stock market uncertainty:


1. Review your plan before making any changes 

This is perhaps the most important thing you can do when it seems like each new day brings a new high or low in the stock market. A well-designed investment plan takes into consideration the many fluctuations that the stock market experiences. You may not need to change course, or you may need to make small adjustments. But uncertainty is not a reason to abandon your plans and start making decisions that aren’t aligned with your overall financial and investment goals.


2. Diversify

Your investment portfolio should not rely upon one type of asset class; if it does, you will be hit particularly hard by market uncertainty. Diversification is the best preparation for uncertainty, because it means you’ll never be hit too hard by one fluctuating factor.


3. Review the quality of your investments

Have you ever tried to get through a bad rainstorm with a cheap umbrella? You won’t get very far! You have to consider not just the type of investments in your portfolio, but the quality of them. Do you have enough “steady Eddie” stocks in your portfolio? (Ones that may not rise much during high-performing markets, but also don’t fall too much when the market falls, either). Diversification can be strengthened by ensuring that you’re making quality investments.


4. Talk to an advisor

The Robin S. Weingast & Associates team