The stock market is bouncing all over the place. Professionals call this market volatility. The ups and downs of the market should not keep you up at night. Vanguard, the investment house, recommends the following tips to sleep better.
- Diversity: Don’t put all your eggs in one basket. Why? If one asset goes up, then hopefully the other assets may stay constant or go up.
- Automatically adjust your asset allocation: Don’t become overexposed to one asset class such as bonds.
- Invest consistently: Buy regardless of the market ups and downs. Timing does not work.
Sleep Tip #358: Follow a plan to sleep well even if the market is going crazy