How to Handle a Stock Market Downturn in 2022
When this article was initially published, we were in the early days of the Coronavirus Pandemic. At that time, we saw many folks are loading up on essentials and hunkering down to stay safe. Back in 2020, when we published this article, the markets were down roughly 25% across the world and we had officially crossed into a bear market. Now again in May 2022, we are seeing another stock market downturn and potential recession on the horizon.
How to Handle Stock Market Downturns
As we find ourselves in another stock market downturn in 2022, it is important as a financial planner to help break apart the narrative and provide financial perspective. I can’t help but remember how things felt just back in March of 2020, during the correction at the end of 2008, and I notice an eerily similar feeling to 2001. While the markets are extremely important to pay attention to for your retirement planning, long term strategies should be in place to keep you on track for the long haul. The key to managing through these types of scenarios is to be prepared ahead of the drop, act before the markets react, and take advantage of the lower prices.
So how do we do this?