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Bee bothering you? Just remain calm.

Bear nearby? Roll into a ball, and play dead.

Shark approaching? Don’t flail about.

Lots of emergency advice goes against the fight-or-flight response humans have developed during thousands of years of evolution.

Yet following this advice has saved countless people from potentially deadly situations.

Guess what? This same kind of advice also applies to investing.

During periods of stock market volatility,

it usually pays to stay put.

Volatile Markets Aren’t Necessarily Risky

During the past week, both domestic and foreign markets have gone down, then up, then down some more. I could tell from the rampant financial porn that investors in Red Bank and across the country were desperate for answers.

As a financial planner with decades of experience both on Wall Street and owning my own stock investing firm, I’ve seen all this before. The good news is that volatile markets are not necessarily risky. I’m confident that the markets will bounce back and that the investors will continue to reap the benefits of buying stocks of great companies.

The Chain Reaction When You Sell During Volatile Markets

“I’m still not convinced that I should stay put during volatile markets…how can I justify that decision to my family?!”

Take a minute to remind yourself and your loved ones about the likely consequences of selling your stocks during downturns.

(1) You lose money when you’re forced to sell your stocks for less than you bought them for.

(2) You lose the chance to invest the money you would have made if you had remained in the stock market.

(3) You realize how much you’ve missed out on, and you lose all confidence in your ability to make good investing decisions.

(4) You’re terrified to re-enter the stock market, even when it bounces back.

(5) You might not be able to retire as soon as you thought…

The First Action You Should Take During Volatile Markets

Volatile markets can make the most seasoned investors antsy. If you shouldn’t jump ship, then what should you do?

Start working on a financial plan!

Many financial planners in Middletown and Red Bank, New Jersey—and across the United States—offer financial plans. In fact, I recently developed a complimentary, 15-minute financial check-up that is designed to help you whether you become a client of mine or not.

I’m also hosting an educational seminar on October 8 that will delve even deeper into the science of investing. It’s all part of my commitment to educating hard-working investors about the best way to enjoy their retirement. Care to join me?