| Worried investors should avoid making big moves because of coronavirus fears | | |  | WED, FEB 05, 2020 | | | | Unless you have been vacationing in a cave with no cell service, you are well aware of how stocks have been hit by fears of the coronavirus. The fact is that any type of market volatility will always create anxiety for investors and leave them with that gut-wrenching, sinking feeling.
It's not easy to just sit still when the market is sliding. You think to yourself: "Shouldn't I actually be doing something?"
While there will always be short-term blips in the market, the best practice is to stay calm. The key is to think critically to make disciplined decisions in the long-term best interest of your portfolio investments and your financial future. While every investor has their personal goals and objectives, there are a few steps that everyone should consider.
During market volatility: Resist the urge to sell based solely on recent market movements; always take the long-term view; review your risk tolerance; make sure you have a diversified portfolio, and rebalance your portfolio as needed. You may want to consider including defensive assets for more stability. Defensive assets, such as cash and cash equivalents, Treasury securities and other U.S. government bonds, are a good way to stabilize a portfolio when stocks are slipping.
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