Stocks Are in a Rut. Here’s How I’m Avoiding That Same Fate as an Investor.

It’s fair to say that the past couple of months have been pretty unkind to investors. Stocks have been down for much of 2022, and they don’t seem poised to recover anytime soon.

As an investor, it’s easy to get discouraged in this scenario. But here are some things I’m doing to avoid getting stuck in a rut.

Image source: Getty Images.

1. Researching different investment opportunities

Buying stocks is something I’m comfortable with at this point, even though there was a time when that wasn’t the case. But even so, I’m using this recent stock market correction as a chance to branch out as an investor and look into new opportunities.

One option I’m looking at is real estate investing — specifically, buying an income property. I know there’s a lot of risk in owning these types of properties, so I fully intend to do my research before diving in. And to be clear, I won’t necessarily jump on that opportunity this year.

Right now, home prices are quite inflated, and housing inventory is extremely low. And so what I’m really doing is setting the stage for a potential income property purchase at some point. Doing so gives me something to get excited about at a time when checking my portfolio is only going to put negative thoughts in my head or drive me into a panic.

2. Loading up on stocks I’ve had my eye on

It’s never easy to see the value of your investments decline. But one positive thing about market downturns is that they can lead to buying opportunities.

Right now, a number of the stocks I’ve been following and wanting to own are on sale. That gives me a chance to scoop them up at a time when I’m convinced there’s room for growth. And that’s certainly something to be happy about.

On top of adding new stocks to my portfolio, one thing I’m also considering is loading up on some S&P 500 ETFs, or exchange-traded funds. Those will allow me to benefit from a broad market recovery, and will also limit the amount of time I’ll need to spend researching individual companies for my portfolio.

3. Focusing on the big picture

I’m not planning to tap my portfolio anytime soon. And that thought alone is helping me avoid feeling down or anxious about the state of the market.

The stock market has a long history of recovering from downturns and rewarding investors who stay the course. And knowing that has helped keep me in better spirits as our current correction drags on.

Do what you can to cope

Stock market correction aside, these are just plain difficult times. There’s a major conflict overseas. Inflation is soaring. And there’s still a pandemic to grapple with.

All of these factors can easily impact our emotions and put a dark cloud over our very existence. But I’m doing my best not to let recent stock market events drag me down, and it pays to do what you can to improve your outlook during these trying times.

10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 2/14/21

The Motley Fool has a disclosure policy.

Leave a Reply

Your email address will not be published.