The first step for you is to understand the environment that you’re operating in and avoid both euphoric and depressive investment traps. The stock market goes through periods of market correction more often than you’d think and for various reasons. Sometimes the changes are related to excessive market valuations after an extended bull market. In other cases, they may be due to external events that overwhelm other fundamental factors that traditionally drive stock market performance.
These market ups and downs are precisely why developing a financial plan and then revisiting that plan as your life changes is critically important to your sustained financial success. A financial plan is constructed specifically to take into account the ebbs and flows of the market so that you are better prepared along the way.
