3 Ways to Navigate Market Volatility

During the months of September and October, the stock market dealt investors more falling stocks than rising ones. Some may suggest the 2014 market has been worse than many years in recent memory. Although that remains to be seen, 2014 has been what I call a “year of fear.”

The year began with an extraordinarily cold winter, with places like Austin, Texas, getting snow and freezing rain, and the polar vortex crippling many parts of the Eastern Seaboard and the Midwest. Throughout the year, other events have affected stock market performance, including the Islamic State group, protests in Hong Kong, softening in German manufacturing figures, the spreading of the Ebola virus and the recent terrorist attack in Ottawa, Ontario. Because investors were inundated with so much information (and much of it was conflicting information), many investors did not know what to do, so they hit the panic button.

Although these events are undoubtedly reason to give us pause, if we look at the facts, we should be less concerned for our long-term investing success. Businesses have restructured and refocused on the bottom line, which often translates to better results for their shareholders. In addition, American energy production is at an all-time high, which has resulted in lower oil prices. While you are looking for positive signs in the stock market, here are three tips that may prevent your investments from getting hurt by recent fluctuations in the market.

Read more from US News & World Report here

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