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In today's video I would like to offer you some advice which admittedly may at first sound controversial, but I think after giving it due consideration, you'll come to appreciate the thoughtfulness and wisdom in this advice.

So what is this potentially controversial advice that I have to offer today? Well it's simple and it's straightforward and it goes like this: If we are in the midst of a bear market or a market correction and our portfolio is being managed utilizing strategic asset allocation, then consider not looking at your account or your account statement during the period of the market decline.

The reason this advice is sensible is because if your portfolio is being managed utilizing strategic asset allocation, then you've created a portfolio that's representative and consistent with your long-term goals, your time horizon and your comfort level with market volatility. So if you are comfortable with your portfolio and its structure prior to the bear market or market correction, then you should be comfortable with it through the market decline.

It's my opinion based upon close to 30 years of professional experience that nothing good is going to come from you monitoring your account during a bear market or market decline. In fact, doing this could lead to several negative outcomes which I would like to review with you.

First, watching the value of your account decline is probably going to lead to negative emotions and you feeling anxious.

Second, the negative emotions you are experience could compel you to take action which would be harmful and detrimental to your long-term investment success. These actions might include fully liquidating your investment portfolio and going to cash, or adjusting your asset allocation based on the current market conditions or what you think the market's going to be doing in the short term. If you were comfortable with your asset allocation prior to the market correction then you should be comfortable with your asset allocation during the correction.

What steps should you be taking during a bear market or market decline? How about the following:

1. Rebalance your asset allocation back to your target asset allocation as needed.
2. Continue making regular contributions to your investment accounts.
3. If retired, consider taking your distributions from your cash accounts or emergency fund rather than your investment accounts, thus providing your investments time to recover.
4. Take a walk, play with your pet or engage in an activity that will leave you feeling happy and in a positive frame of mind.

If looking at the depressed value of your accounts can cause fear and anxiety and lead to you taking action that would be destructive to the achievement of your long-term financial goals, then consider my advice and TRY NOT TO LOOK!

For more information on my advisory services, please visit: https://www.maywealthstrategies.com

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