If you’ve found yourself feeling more stressed than usual about the economy lately, you’re certainly not alone.
When you visit the homepage of any major U.S. news outlet, you won’t have to scroll far to see phrases like “prepare for recession,” “warnings from experts,” “rising inflation,” or “slowing economy.”
It’s easy to get overwhelmed with so many alarm bells ringing everywhere you look. But succumbing to anxiety will not only destroy your peace of mind, it will actually hinder your ability to make smart financial decisions.
At FGCP, we know that your quality of life is just as important as your financial well-being, so we want to help you invest confidently and wisely no matter what’s happening in the economy. To help with that, here are three key principles for navigating periods of negative news and economic uncertainty.
Stay Informed, But Know When to Turn it Off
People tend to respond to economic anxiety in one of two ways. Some people prefer to bury their heads in the sand, learning as little about current events as possible so they don’t have to think about them. Others find themselves obsessively following the news and gathering more information so they can feel like they have things under control.
In reality, the people who are best equipped to weather economic challenges are those who avoid both of these strategies, and instead choose to recognize the situation and face it head on. To do this requires you to stay informed, but also to understand that knowledge is useless without action.
Gather the information you need to make a decision, act on it, and then walk away to spend time with your family, rest, or enjoy your favorite hobby. After all, what’s the point of having wealth if trying to hold onto it makes you completely miserable?
Don’t Let Uncertainty Keep You From Investing
Even in a recession (or in our current high inflation, high interest rate environment), there are still some investments that continue to perform better than most.
As with any investment strategy, it’s always important to remember your goals and choose the vehicle that can help you reach them. For example, if you’re investing in real estate in order to generate a monthly rental income for yourself, your needs will be entirely different than someone who’s investing in real estate for future appreciation and can afford to hold onto an underperforming asset until the market recovers.
In general, keep in mind that not investing at all when the economy is uncertain can be just as harmful as losing some of your money to an investment that doesn’t perform as well as expected. Now is not the time to stop investing, but rather, to examine your current strategies and adjust them with the help of trusted experts.
Find the Right Experts to Listen To
The trouble with only getting your information from the news or social media, is that no financial strategy will work for everyone. Many experts make generalizations in order to simplify their message or appeal to a broader audience, but their advice might not fit your unique situation.
This is why it’s more important than ever to find partners who don’t just know about the economy, but also know about your specific goals, circumstances, and concerns. A great partner can help you figure out which pieces of news are most relevant to your investment portfolio and point out places where you may be worrying about something that doesn’t even affect you.
If you’re interested in learning how First Generation Capital Partners can help you find investments that are positioned to perform well over the coming months and years, contact us today by filling out this brief form.