It really hasn’t been a good week, month, or even year, for the American stock market. The Dow Jones Industrial Average and the S&P 500 Index have taken a massive hit of late. This is partly due to investor disappointment due to the stubbornly high inflation rates, which are currently at 8.3%.

Whether you’ve invested in stocks directly or have your money going into a market-linked retirement plan, you’re likely wondering just how long this financial downturn will go on. While new-generation investors may be fearful of the current economic climate, the fact is that unsettled markets are normal, too. Below, we’ve put together advice regarding how to navigate the stock market during such a time. 

Remain invested

Part of what defines an excellent investor is having the mental tenacity to see one’s investments through highs and lows. Whenever there is excess volatility like there is now, remind yourself that times like these will pass, as well. In a bear market, it’s easy to see nothing but negativity, but the market has been through tough times in the past and recovered. While investing in a bull market is easy, it’s the tough times that will teach you to stick to the fundamentals. 

Don’t time the market

If you find a stock with really good fundamentals at a good price, purchase it immediately. Don’t wait for the “best time” to invest in the market. Remember that stock market success is less about how you time the market and, instead, more about your time while being invested in the market. So, if you feel bullish about the long-term potential of a stock, that should be enough reason to buy and hold. 

Review your risk tolerance 

If you’ve been experiencing a lot of anxiety due to market movements, it could mean that you need to take on less risk. Not everyone is capable of opening themselves up to high-risk assets, and if you are approaching an important time of your life, like, say, retirement, this may be a good time to review your exposure to stocks with the help of a money manager. 

Don’t kill your chances of success by being overconfident

Investors who believe they can beat the market always are their own worst enemies. The stock market is going to be cyclical. It never moves in the same direction for too long. So, don’t get overconfident about your ability to turn a profit. 

Stick to the basics

Investing should not be complicated. Make this easy for yourself by sticking to a select few principles that can lead you on the path to long-term market success. These principles include diversifying your portfolio, reviewing your portfolio and asset allocation from time to time, and selecting low-fee funds. 

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