Investor Best Practices
Our contributor today says: “Here in Michigan it appears ALL aspects of the Governor’s orders are politically-motivated and NOT based on science or even the illusion of science (which is what is continually reported in the MSM regarding the need to ‘flatten the curve’.)
“The citizens of Michigan have willingly exchanged their constitutional rights for the possibility of safety. My guess is once large-scale testing is done, many will be embarrassed they gave up their liberties; meanwhile, the governor won’t admit to any wrongdoing.
“I will also note the level of anarchy is closer to the surface than ever; the governor should let more people go about their business before their rage boils over.
“And if this is Gretchen’s audition for U.S. vice president, she’s going to need it because she’ll have a difficult time being re-elected here; whereas before the pandemic, her second term in Michigan was all but guaranteed..
“In short, great challenges in the Great Lakes State! Just not great leadership.”
Thanks for writing about what’s happening in your state or country. Keep the feedback coming…
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Your Rundown for Wednesday, Apr. 22, 2020
For investors out there: You feeling the pain? Because if you’re following the market’s whipsaw action, it’s downright migraine-inducing.
But market pullbacks of 35%… 40%… even 50% come with the territory. And it’s out of your control. What you can control? Your behavior.
So here’s some advice on best practices if you’re going to steer your way through bull or bear markets.
- Stay the course. While it’s tempting to look at your brokerage account daily, hourly or even minute-by-minute, it’s not helpful. (Remember that migraine we mentioned?) If you had a strategy that included your personal risk tolerance before the pandemic crash, stick with it. Otherwise…
- Readjust. If you can’t stomach the market volatility, talk with your financial adviser and retool your plan. Remember, much of this depends upon your age. The closer you are to retirement, the more risk-averse you should be. Are you in your twenties or thirties? Just let it ride…
- Automate. If your contributions to your 401(k) are automatic, you shouldn’t even think about the cash that comes out of your paycheck every month. You’ve already been living without that money; continue to do so. But if it depends on you to transfer funds to your brokerage account or IRA, that’s going to take more moxy. Having second thoughts? See above…
- Buy at a discount. Speaking of moxy, instead of parking cash in a savings account — that bears little to no interest — why not buy stocks while they’re on sale? No, we’re not talking about risky stocks here. We’re talking about growth stocks with solid track records that might be in a slump right now but will most certainly bounce back.
The truth is you’re in the driver’s seat, and your behavior is the key to steering your way through the market’s ups and downs.
Market Rundown for Wednesday, Apr. 22, 2020
The S&P 500 Index is up 49 points to 2,781.
Oil’s rebounded 20% to $14 for a barrel of WTI.
Gold’s rallying: up $38.10 per ounce to $1,725.90.
Bitcoin is up $185.56 to $7,076.77.
Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.
We’ll catch up Friday. Have a good day.
For the Rundown,