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The US Stock market has gone practically nowhere in the last year or so. This recent market volatility has sent a rude awakening to some investors; snapping them out of their Fall TV and sports watching.
There is renewed interest in all things stock market and money right now. We want to offer a few thoughts on what can be done about the inevitable emotional pain that arises from dreaded market volatility.
In investing lingo dealing with market volatility is called “Hedging” or “Risk Management” and it can take many forms. In their simplest form, "hedging" and "risk management" are used to keep us from making big, often emotional short-term investing decisions. These decisions can have big, and even negative long-term investing impacts.
Here are 4 potential ways to “Hedge” or “Manage” investment risk:
"Hedging" and "risk management" is what you do before and when the stock market is having a temper tantrum. You don't need to ebb and flow with it, you can choose ahead of time and in the moment to protect yourself from the crazy.
Give us a call if you want to learn more of what you can do when the stock market goes down.
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