How To Handle Market Turbulence The Right Way…
As the turbulence jostled the plane, you could hear children’s laughter in the back, enjoying the ride as if they were on a roller coaster. Meanwhile, the rest of us clung to our armrests, heads pressed firmly back, eyes forward and tense.
Holding our breath, waiting for it to end.
This wasn’t the occasional jolt of turbulence that you often feel on a flight. This prolonged rattling made you second-guess airplanes as a legitimate mode of transportation. It was the worst bout of turbulence I’d felt in a while… Since flying into the southernmost city in the world, Ushuaia, Argentina, known for its horrendous winds, nearly a decade prior.
Going a long time without feeling that vicious, prolonged turbulence makes you forget what it’s like. You forget about the risks associated with flying. But once you hit that violent air pocket, you’re instantly reminded. Your mind begins racing, and worst-case scenarios run through your head like a slide show.
Are the air masks about to drop? Are these wings going to be ripped off? Is this plane going to crash?
The pilot came on over the intercom to tell us he ordered the flight attendants to remain seated for the duration of the flight and that no drinks would be served. So much for helping to calm the nerves. He then calmly informed us that we were going through some crosswinds and that there was nothing to worry about.
Even though I knew it was highly unlikely we would crash, having the pilot reassure us that all was good and we would be descending shortly was comforting. It put my mind at ease, and I was able to release my death grip on the armrest.
Looking back, the flight experience resembled what I believe investors are feeling today.
For many, the turbulence we’re dealing with right now feels worse than it really is. Some investors are likely having flashbacks to the last period of significant volatility — around the onset of the pandemic. That created some real, lasting scars in the psyche of investors — especially since it had been a long, long time since we’ve had to deal with any real volatility (the period around the 2016 election comes to mind).
What You Can Do Right Now…
Investors are on the edge of their seats. That’s understandable. Anytime there’s something out of your control and the future is uncertain (especially when it comes to money and jobs), people tend to get extra anxious.
Unlike my pilot, I won’t ask that you refrain from drinking, but I would like to provide some reassuring words…
At some point, the plane will level out and the market will be fine. Sure, there are numerous uncertainties out there. But those are largely out of our control. If you are still worried about the daily fluctuations in your portfolio, then it’s a clear sign that you are carrying more risk than you’re comfortable with. If that’s the case, think about cutting some losers or taking profits from some of your winners.
That’s what we’ve been doing for the past few months over at Capital Wealth Letter. Aside from that, we’re also playing offense — selectively. Make a watchlist. If you can stomach some volatility, don’t be afraid to start taking positions in names you like.
I also want our regular readers to know that my team and I are hard at work on our annual predictions report. This piece of research is easily one of the most popular things we do at Capital Wealth Letter — and if history is any guide, more than a few of the picks in this report will prove valuable to long-term investors.
P.S. If you’re one of our many readers who wished they had the chance to enjoy the previous runup in cryptocurrencies but didn’t take advantage, then you’re about to get a second chance…
That’s why I just released a brand new report covering the world of crypto investing. I’ll explain how cryptocurrency works, what it means for the future, how you can participate, the three best crypto investments available right now – and how you can profit…