This week’s stock market slide has many investors wondering what to do.
Reuters has some advice:
When the stock market has suffered a couple of really big slides in a row, like it did this week, the financial advice to those who are freaking out is always: Do not look at your account balances. But maybe, just this once, you should peek.
The advice still stands not to change anything in your portfolio; trying to time the market is a fool’s errand. What you need to look at is your cash.
The Federal Reserve’s most recent rise in interest rates and the flattening of the bond market means that there are better short-term options for your money than just a regular savings account. Also, a market dip is simply a good reminder that you should be looking at your accounts periodically to make sure you are sticking to the balance you want.
You might, for instance, look at your retirement or brokerage accounts and find that you have several thousands of dollars in dividends and yields that have not automatically reinvested. You might also have cash on hand in a savings account that has built up past the level you need for a buffer or for an emergency account.
Just don’t panic–nobody else can predict the future either.