Keeping this in mind, here are five of the tips to beat the gloomy market blues.
1. Continue Saving 10% to 20% of your income - As a thumb rule, one should set aside 10% -20% of their income towards various saving instruments. A portion should be committed towards the retirement plan while the remaining should be divided between other life goals. The point is that one should keep the saving momentum static, irrespective of market movement.
2. Go for Index funds rather than individual stocks - If an individual dabbles into stock markets then it’s better to bet on Index tracked stocks and not individual stocks. The Same strategy can be applied for mutual fund investments, where exposure to index-based funds is appropriate. Moreover, an individual can invest into global theme based mutual funds to diversify across economies.
3. Do not turn over to real estate - The lacklustre stock markets can prompt many to invest into real-estate, which is not the right strategy to implement. Real estate is a relatively illiquid investment option and has risks involved equivalent or more to what is present in the stock markets. Even individuals with excess money should not put away all their investments into real-estate as they wait for the stock markets to revive.
4. No Credit Card Dues - The usual habit of rolling over credit card dues should strictly go off at times of market volatility. Instead of focusing on the losses that could accrue from lower stocks, one should pay attention to inappropriate money that is paid to credit card companies.
5. Be involved with advisors or intermediaries - The involvement of a financial advisor should not let an individual shrug off concerns as far as investments are concerned. The financial planning does not end with completing paper formalities but calls for attention from investors too. An individual should constantly be in touch with their advisors to review and monitor their investments and take necessary action as and when required.