There are always periods during which investors are surprised by the performance of their investments – whether positively or negatively. While upturns are a cause for joy, downward trends can lead to sleepless nights. How do you deal with the situation personally if the value of your portfolio suddenly falls?
Created on 18.03.2020
My investments are not performing as expected. What should I do?
When the stock market experiences a slump – just as it currently is – different investments frequently suffer. This of course means that performance often fails to meet your expectations. But what does this situation mean for your portfolio and what options do you have now?
How do you deal with (potential) losses?
Many investors only discover how they deal emotionally with real or potential losses when their investments do not perform as hoped for and they have to deal with a book loss or even a realized loss. Realized losses occur when you sell your investments for a lower price – up to this point the loss is only on paper (in the “book”). The performance of your investments may improve in future if there is an upswing on the stock market. Even if you have created an investor profile, it can still be difficult to accurately assess your own risk appetite. Both your risk appetite and your risk capacity may alter over the course of time due to changes in your personal circumstances or attitudes.
Review your investor profile
It may be time to review your investor profile and modify it if need be. If you are unhappy with your originally defined investment strategy, your advisor would be pleased to help you find a solution that is more suitable for you.
Don’t forget that markets constantly experience ups and downs. Think hard about the time you choose for selling. The world of investment can change quickly.
