Holding Your Long Term Plan Is a Golden Strategy in Uncertain Markets

by David Schuh

The Australian share market has posted a sharp fall, hurt by weakness in all sectors, particularly financial and health care stocks. Some investors have interpreted the RBA rate drop on Tuesday as a sign that the Reserve bank is losing its power. Analysts were also angered at the banks decisions not to pass on the full rate cut to customers.

What does this mean for you?

With uncertainty around markets, it's all the more reason to hold on to your long term plan. If you're not sure where you're headed and you need to focus on this, ask yourself the following question: "What needs to happen in the next 3 years for me to feel as though I've made good to excellent progress?" If you don't know how to execute your plan so that you can create what you would like, it's a sure sign you need a second opinion on this aspect of your life. Remember, just hoping that things will change is not a viable strategy.

This is not the time to get caught up in the financial news cycle. Many financial journalists are now being financially rewarded based on the number of Internet clicks they receive on their articles, which encourages them to write more and more outrageous, sensational news pieces which are designed to illicit an emotional response. Take what you're reading and viewing with a grain of salt and try not to get caught up in any hype, because that's just what it is.