When the stock market is RED, what to do 👉

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BOO! 👻👻 Happy halloween if you're in USA, but if you don't celebrate this day, that's fine too! Something scary is up in the stock market today..

We all know the feeling: you log into your investment account, and bam! A sea of red is staring back at you. It’s enough to make anyone want to hit the panic button. But before you do anything drastic, let’s break down what a “red market” really means and the best ways to handle it.

1. Understand the Context

Red days in the market are normal. In fact, they’re essential to the market’s health! Just like the seasons, the market goes through cycles of growth and decline. These drops are often caused by economic factors like inflation, interest rates, or global events. But here’s the thing: market downturns are temporary. History has shown us time and again that the market bounces back and, over time, grows stronger.

2. Don’t Panic-Sell

Selling stocks just because prices are dropping is like selling an umbrella because it’s raining. It might feel like a quick fix, but it can actually harm your long-term financial health. When you sell in a downturn, you lock in those losses and miss out on potential gains when the market recovers. Remember: investing is a long game.

3. Revisit Your Goals

Before making any changes, think about why you invested in the first place. Are you investing for retirement, a down payment, or financial freedom? These goals are likely years or even decades away, meaning short-term volatility shouldn’t throw you off track. If you have a solid, long-term plan, a red market is just a minor blip on the radar.

4. Think of It as a Buying Opportunity

When the market drops, everything is “on sale.” As a long term investor, I love market downfalls because I get to pick stocks I really like for a discounted price.

This is especially true for quality stocks and index funds. Of course, make sure your emergency fund is intact before you buy, but if you have extra cash, red days can be a great time to increase your investments.

5. Focus on Your Cash Flow

In times of market turbulence, paying attention to your personal cash flow is more important than ever. Keep up with any debt payments, make sure your emergency fund is stocked, and prioritize consistent contributions to your investments. This habit of steady investing (known as dollar-cost averaging) allows you to benefit from market lows as well as highs without trying to time the market.

6. Use It as a Learning Moment

Market downturns can teach us a lot about our own risk tolerance. If you’re feeling very anxious, it might be a sign that your investments are too aggressive for your comfort level. Re-evaluating your asset allocation (your mix of stocks, bonds, and cash) can help align your portfolio with your comfort level.

If you’re ever feeling overwhelmed, remember that you’re not alone. Markets go up and down, but you have a community right here to help you stay focused on your goals. And if you have any questions or want a second opinion on your portfolio, don’t hesitate to reach out.

If you want to be more confident w/ investing your money in the stock market and want to get more clarity w/ stock market investing, I am hosting my free class. Make sure you sign up!

Remember, red days in the market are just that—days. They don’t define your entire investment journey. The best approach is to stay the course, make level-headed decisions, and keep your eyes on the long-term.

3 Stock Market News This Week 📈

Shares for Super Micro (SMCI -32.68%) collapsed on Wednesday after its auditor Ernest & Young resigned from its role.
Humana (HUM +3.32%) had a clean checkup as the health insurance giant has overcome a rise in healthcare costs.
Cocoa prices have risen 45% this year and reached a 47-year high. That's been melting candy giants: Hershey: -4.80% YTD

2 Actions To Do Today 🌱

MONEY: Start your holiday sinking fund. If you're like me, I love giving gifts during the holiday but if you're not prepared, this could break your bank. What is a sinking fund? It's a specific "bucket" you put your savings in for a specific purpose. You can do buckets in ALLY BANK! this is why I love using this bank for High Yield Savings.
LIFE: Enjoy trick-or-treating today! <3

ONE Quote to be Inspired ✨

"If you dig a hole and it's in the wrong place, digging it deeper isn't going to help."

Source: The Left-Handed Designer

I used to think that working harder is always the answer to making more money. Turns out, there are SO MANY WAYS to do it. the thing is you have to look for a DIFFERENT way.

Something to keep in mind today!

Have a great week ahead ~

Ellaine