Rani Jarkas’ Tips for Managing Stock Market Volatility

The stock market is unpredictable. This is because volatility can be affected by numerous factors, such as government regulations, weather, and company performance. Losing money due to volatility may cause you to panic, but Rani Jarkas advises you to do otherwise.

When dealing with a volatile market, it’s best to remain calm, collect your thoughts, and remember the following tips from Rani Jarkas:

  • Don’t change your strategy

A sudden dip in the market isn’t a sign for you to revise strategies. In fact, if you already have a tried and tested strategy in place, you should stick to it.

According to financial management experts, the best reaction to market volatility is to do nothing. If you try to cut your losses by selling stocks, you might end up buying back in when the prices have gone back up, leading you to lose money in the long run.

  • Diversify and rebalance

It’s never a bad idea to diversify your portfolio. This is a crucial strategy for managing stock market volatility, balancing risk and reward, and potentially reducing the severity of sudden dips.

A diverse portfolio has four characteristics: domestic stocks, bonds, short-term investments, and international stocks. So, for example, investors with a moderate risk tolerance can invest 65% of their funds in stocks, 30% in bonds, and 5% in cash.

You may also decide to rebalance your portfolio, but only if necessary. Financial experts advise that you only rebalance every quarter or every six months to maintain your goal ratios.

  • Always have cash on hand.

You don’t always have to sell stocks to remain afloat in a volatile market. For better security, it’s always best to have money in a more accessible place, such as a savings account or in cash.

Your emergency fund should be able to cover three to six months of your average expenses, preventing losses due to unexpected expenses and unemployment.

Choosing the right markets to invest in may also help manage volatility risks. You can work with Rani Jarkas to find the right sectors at the best time, ensuring your growth!