6 Things to Do to Get Your Investments Back to Where They Were

I hope you are doing well and are staying safe and healthy. While I’m here to help with your financial matters, it is important to acknowledge that our health is our most important priority.

This has been a rollercoaster of a time to invest – and I truly believe now is one of the most important wealth building opportunities of our lifetime. If you haven’t listened to my podcast that explains why, I highly recommend you listen to it.

Many investors are scared to death to buy and are frozen. They have seen their retirement accounts decline sharply and fear they will never recover.

I’m confident the stock market will not only recover, but rebound in a breathtaking way.

Now is the time to make some small changes that, if you take action, may make a big difference in your portfolio and future wealth:

1. It is always smart to buy quality on sale. The S & P 500 is the definition of quality companies and can still be purchased at a 23% discount. If you don’t own it, consider buying it.

2. Pay attention to your asset allocation. Is your money invested in just small companies or all in one sector? Make sure you own small, medium and large companies, some international, emerging markets, etc. Diversify among asset classes.

3. Increase your 401k contribution if you have a 3-to-5 year time horizon.

4. Invest in layers and dollar-cost-average in over time. Buy at regular intervals.

5. Don’t feel you have to pick stocks. You can buy ETFs that invest in a sector or an asset class. You can buy large tech or the S & P 500 or small companies in one purchase of an ETF.

6. Keep a long-term time horizon. Although the stage is set for a strong bounce and rebound, it is always wise to invest in things you want to own for a long time.

While no one can guarantee if the bottom is in, trying to find the absolute bottom is an exercise in futility. Even professionals with sophisticated computer software can’t do it. It’s much better to buy in intervals than wait for the elusive bottom. It may already be behind us.

I’m confident with the FED lowering interest rates, oil prices at 19 year lows, $2 trillion to $10 trillion in government relief programs coming, the economy will be strong again by the second half of the year.

Professional investors will look past this “chasm” to the second half of the year and soon will be taking advantage of bargains that abound in the stock market. It will go back up because this was not caused by a financial crisis. It was a health crises that caused a financial crisis.

This is the time to take action and buy low while you still can. Once a cure is found or a date is given that the entire U.S. will go back to work, the stock market will be off to the races again, in my opinion.

Stay healthy and safe. This too shall pass.