Worried About Checking Your Portfolio? Don't Be: Things Are Looking Up

Last year, when the markets were miserable, my number one recommendation to my clients (and myself) was simply to not check your portfolio.

If you believe in the markets and the strength of the economy, you know and understand that downturns are typically a temporary occurrence. When you’re constantly looking at your portfolio and seeing it go down, down and down, you’re setting yourself up to make snap decisions based on bias and emotion, which isn’t in your best financial interests. It’s also not great for your mental health.

That’s one of the potential values that a financial planner can bring to the table for you — monitoring your portfolio for you during the rough times. They’re there to remind you about the long-term goals and to help keep you on track while things are bumpy.

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The good news is that the clouds appear to be parting, and I’m looking at my portfolio again. The markets are still going up and down, which is to be expected, but we’re seeing an upward trend lately. As a financial planner, I’m giving myself permission now to start checking my portfolio again, because I think we’re moving in the right direction.

It’s something to keep in mind, in general: When the markets are massively down, don’t look, just keep trust that you’re investing in the long game and hold steady. When the markets are rebounding, go ahead and take a peek and enjoy seeing the numbers go up, because you’ve been patient.

I always like the advice “control the controllable,” and it works in this situation — you can’t control the stock market, but you can control your reaction to it. When it’s down, you should not look at it to avoid making panicked decisions. And when it’s up, if looking at your portfolio gives you hope, then by all means, enjoy taking a cautious look again.

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