Miata,

I know they say not to sell stocks when the market is low. Should I be making any moves financially while the markets are so volatile?

-Sue

Absolutely Sue! In this type of market people panic, creating deals for a shrewd investor. As an artist, you should be comfortable moving against the crowd and looking for opportunities that others miss. Translate this ability into financial moves, and you’ll soon be a pro!

Here are a few ideas:

• People often delay financial transactions when the stock market tumbles, so look for teaser interest rates at banks.
• The Federal Reserve may lower interest rates. If this happens, auto loans and credit card rates drop (mortgages, unfortunately, are more closely tied to long term Treasury bond rates, so you won’t necessarily find opportunities there). If your car loan is at a high rate or your credit card is taking a pound of flesh for every purchase, search for better terms.
• Sell loser stocks and upgrade. If you own mutual funds or exchange traded funds, it’s often best to sit on your hands through a downturn. But if you own individual stocks, this is an opportunity. Down markets usually don’t discriminate between bad and good stocks when the sell-off occurs, sending all of them down together. This could be a good chance to sell underperformers in your portfolio and jump into higher quality companies. Sure, you’ll be selling low, but when the market recoups, quality stocks usually outperform poor quality investments, helping you to make back lost money faster. Making money faster always puts a smile on my face!