Until now, the stock market conditions in some countries have experienced difficult times. Then what to do now? Given the unfavorable economic conditions, some media and financial experts have even issued predictions that there will be a massive recession globally? Does the investment need to be continued, stopped, or even disbursed to achieve asymmetric investing? So, for investment in difficult times, this is what you have to do Investructor.
1. Check your destination again
Remember your goals again when making an initial investment. Because that’s the right way of investing, also investing in difficult times. The first time you have to do is always give a title to your investment. Without the title, you will certainly find it difficult to be consistent, even if you will be vulnerable to panic when the value of your investment does not match expectations.
If you have several financial goals at once, try checking again, what financial investments are “threatened”? You must also remember the principle of investment diversification, right? So you also have several instruments at once. So, check which instruments with financial objectives should be evaluated because the value is decreasing.
2. Also, check your period
The second way to invest properly is to determine how long you have to invest to achieve your financial goals.
The investment period is 3; short term (3-5 years), medium-term (5-10 years), and long term (more than 10 years). The existence of this time horizon will determine when we choose investment products. Some products are suitable for the short term, there is good performance for the medium term, there are also suitable to be a vehicle towards long-term financial goals.
If your financial goals are still long-term, with sufficient emergency funds, then you can continue investing in this difficult time. However, if your financial goals are short-term, with sufficient emergency funds, then it is better to hold first. You might consider transferring funds to safer instruments. Always check and calculate the profit and loss, and adjust it to your condition.
3. Check emergency funds
While checking investment conditions in difficult times, you should also check your emergency funds. Because, our routines have changed, our ways of life have also changed, cash flows have changed, so emergency funds have become the most important part of financial management.
It would be very nice if you have sufficient emergency funds in uncertainty like this, in the form of cash or stored in liquid instruments.