Control Your Financial Emotions
Market Volatility is Here to Stay
I have a confession: I check the market and my portfolio every day. Many financial advisors would tell you this is a bad habit, and they're right. But I do it anyway.
Why? It helps me understand market movements and their impact on my finances. Here's the key, though - I never let these daily checks influence my investment decisions. That's a slippery slope into day trading, which is definitely not my strategy.
Market Volatility
If you're like me and watch the markets daily, you've witnessed the recent dramatic swings. The S&P 500 has been on quite a rollercoaster this past month, ending down 2%. And here's what I believe: this volatility isn't going anywhere, especially as we head into the next administration. Consider this your heads-up if you're a daily market watcher.
Yesterday brought some positive movement thanks to encouraging inflation news. The latest report showed inflation is cooling down, which got investors excited about potential Fed rate cuts.
Why the Rollercoaster?
What's behind all this market turbulence? It's largely investors trying to predict Jerome Powell and the Federal Reserve's next moves on interest rates. Every new economic report sends the market spinning. Just last Friday, strong unemployment numbers tanked the market because investors interpreted it as a signal that the Fed wouldn't cut rates.
My advice?
Buckle up - we're in for a bumpy ride. If market volatility makes your stomach churn, you might want to have a chat with your financial advisor. Or better yet, maybe stop checking those market updates every day!