The Market Crashed And You Lost A Lot Of Money. Here s What To Do Next

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The coronavirus crisis has left millions unemployed, thousands sick and most people in some financial strain. The last thing many of us want to do right now is look at our investments .

If you haven't yet, try not to. Through March, the S&P 500 had the worst quarter since 2008 while the Dow Jones hadn't seen a drop this bad since 1987. And in May, Federal Reserve chair Jerome Powell warned of a "prolonged recession," leaving many wondering if the worst is yet to come. If you didn't look at your portfolio, you'd be doing yourself a favor. 

Chances are you've already looked and you're anxious about the cash you've lost. That feeling is normal -- and probably common. But if you're wondering what to do with such a tumultuous market, there's an easy answer: nothing.

Before you make drastic moves with your investments, see which ones are best for your finances right now. 

Read more: The best robo-advisors in 2020


1. Assess the damage
You're probably panicking. Watching your investments wash away in a matter of hours, days or weeks isn't exactly a fun time. But instead of freaking out, blog saham indonesia use this time to see which investments are worth keeping and which ones to drop. 

Use this time to evaluate long-term goals. Are you OK with losing more money -- even in the short term? There's a chance your earnings will continue to drop and if you need your money within the next few months to a year, you might need to move it to a more stable account. 

It might be time to cut your losses for some securities and use that money elsewhere. If you need the cash, use it. Otherwise reinvest in the market, whether in stocks you can buy cheap or dividend-paying stocks, where you'll get a cash-out every month or quarter.

Read more: Five investment accounts everyone should have


2. Evaluate your portfolio
Aside from a handful of companies, most stocks are suffering right now. That sounds bad -- and it is, for most other things. But for your portfolio, it could be a very good thing -- later.

If you have extra cash on hand, invest in the stocks that were once too expensive for you. The strongest companies will most likely be here when the crisis is behind us. Look at the costs and see which ones you want to add to your investments. 

You may also want to check in on companies and sectors you haven't invested in. For instance, health care and industrials might be something to explore.


3. Dial back stock-only investments
While your portfolio should already be diversified, now might be the time to consider a conservative move. If you're closer to retirement but you're not ready to give up your stock market investments, look at more conservative investments. Some securities invest in stocks, bonds, CDs, real estate and other types of investments. Consider diversifying into options such as:



Exchange-traded funds



Index funds



Mutual funds



Annuities

With lower-risk investments, you might continue to lose money before you see substantial gains again, but you may not lose as much as you would if most of your money was in individual stocks.


4. Stick it out
It easy to balk when you see investments plummet. But the younger you are, the more likely you are to enjoy a stock market rebound. The 2008 recession lasted a year and a half but most last less than a year. (The other exception is The Great Depression, which lasted nine years.)

Because most recessions are short-lived, take a moment to remember that the stock market plunge is short-lived, too. Once you're on the other side of this, you'll see your investments thriving -- maybe even better than they were before.


5. Liquidate if you have to
While younger folks might have the luxury of riding it out, not everyone can afford it. For one thing, you might be closer to retirement. This means you can't afford to take bigger risks -- including waiting for a rebound that you aren't sure will come before you stop working. 

If you've lost your job or you're facing significantly reduced hours (and a lower paycheck), you might not feel comfortable keeping your money in the stock market any longer than you need to. Taking your money out isn't a bad thing if it's a need. It's better to cover your costs instead of going into debt just so your investments can earn a little more later on. If you need it now, use it now. Otherwise, try to hold off liquidating. You might find other, safer investments, but waiting it out could give you a big financial cash out in the long-term.






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