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The 1 Move to Avoid at All Costs During a Down Market

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The 1 Move to Avoid at All Costs During a Down Market

Stocks are down substantially since the start of the year. And while some investors have seen their portfolios take a harder hit than others, it's a precarious time to have money in the market.

If tracking your portfolio is making you more and more nervous by the day, you may be tempted to pull your money out of the stock market to minimize your losses. But that could end up being the biggest mistake you might make during a downturn.

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Stay the course

When stock values keep plunging, it can be difficult to keep your cool and leave your money alone. But perhaps the worst thing you can do during a market downturn is pull your money out due to fear.

If you sell off stocks when they're down, you're guaranteed to lose money. It's that simple. But if you leave your portfolio alone, there's a good chance that in time, it will recover its lost value.

In fact, a really good bet right about now is to stop checking your portfolio on a regular basis. Checking your portfolio frequently is likely to wreak havoc on your mental health and potentially drive you toward rash decisions. If your stocks are earmarked for a far-off milestone like retirement, there's probably no need to make changes to your positions anytime soon -- so don't even put yourself through the torture of looking.

What if a need for money arises?

You may have money in an IRA or 401(k) plan earmarked for retirement. But what if you have money in a regular brokerage account whose balance is now down, and a need for cash arises?

In that case, it pays to explore different options before tapping your portfolio and incurring major losses as a result. First, if you have an emergency fund, now's the time to raid it. The great thing about savings accounts is that your balance doesn't change based on market conditions, so if there's money for you to access in the bank, that should be your go-to option.

Another avenue you might explore is to tap your home equity if you can do so affordably. Unfortunately, borrowing rates are now up across the board, so you'll need to research your options to see if taking out a home equity loan or line of credit makes sense for accessing cash in a pinch. But these days, homeowners are sitting on record levels of tappable equity, so if you want to avoid major losses in your portfolio, that's a good way to do it.

Don't make a move you'll regret

Stock values could recover in weeks, months, or years -- it's hard to know.

But one thing that is clear is that if you dump stocks while they're down, you'll guarantee yourself losses. And that could constitute a major financial setback for you. So if you have the option to leave your portfolio alone and ride out this current wave of rockiness, do your best to go that route.

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Shop Talk

What's new in the business community!

If you know of local business openings or closings, please notify us here.

· The Brothers That Just Do Gutters are opening a new location in Allentown at 1302 N. 18th St.

· St. John Chrysostom Academy, an Orthodox school serving grades 1-9 starting this fall, held a grand opening at its St. Francis Center, Bethlehem, campus.

· Easton Commons, a shopping center anchored by Giant Foods at 2920 Easton Ave., Bethlehem Township, has a new name: The Shops at Bethlehem.

· Carbon County is getting a taste of Brazil at Uai Brasil BBQ at 315 Lehigh Ave. in Palmerton.

· The Keystone Pub in Bethlehem Township, at 3259 Easton Avenue, has reopened after a lengthy and expensive renovation. 

· The Trading Post Depot opened at 401 Northampton St., Easton. The rustic furniture store makes custom tables for dining rooms, desktops, conference centers and more.

· The Easton area has a new gym: Homemade Fitness at 444 Cedarville Road in Williams Township.

· Il Gaetano Ristorante opened at its 665 Columbus Ave., Phillipsburg, location. 

· Ciao! Sandwich Shoppe to open second location on College Hill in Easton, replacing The Kettle Room

· Rene and Grisellies Benique have opened Ezekiel 47 Cafe at 10 S. Fifth Ave., off Fifth and Penn avenues, in West Reading. 

· Alter Ego Salon and Day Spa in Emmaus is holding a grand opening Sunday, May 22, from 11 a.m. to 3 p.m., with a ribbon cutting at noon. 

· Origen Latin Fusion has opened at the site of the former Tomcat Cafe in Sinking Spring, Berks County. 

· Sellersville Senior Residences will hold a ribbon-cutting ceremony May 24. The Bucks County affordable-housing community for adults 55 and older has 50 apartments, with eight allocated for people with behavioral health needs.

· The House and Barn in Emmaus has opened its Shed outdoor dining and cigar bar area. The House and Barn is at 1449 Chestnut St. in Emmaus.

· La Spa & Nail Bar will hold a grand opening from 11 a.m. to closing on Friday, May 20, with a ribbon cutting at 11 a.m. The 2765 Papermill Road, Wyomissing.

· Realtor Amanda Vachris and the Schuylkill Chamber of Commerce will hold a ribbon cutting at Vachris's new Keller Williams Real Estate office at 15 St. John St., Schuylkill Haven, at 4 p.m. on May 24.

· Il Gaetano Ristorante will hold a grand opening on Friday, May 20, at 5:30 p.m. The 665 Columbus Ave., Phillipsburg.

· First Commonwealth Federal Credit Union will hold a grand opening at its new headquarters in Trexlertown, 6126 Hamilton Blvd., on May 18.

· Vinyl Press Signs & Graphics has relocated within Emmaus. The new site is 15 S. Second St., not far from the former Sixth Street location.

· Pedro's Cafe in Emmaus to close

· SV Sports (formerly Schuylkill Valley Sports) to close Quakertown location

· Flemington DIY will host a Grand Re-Opening on May 14 at 26 Stangl Road, Flemington. The celebration will kick off at 10 a.m. 

· Elpedio’s Ristorante at Seipsville opened at 2912 Old Nazareth Road in Easton. The restaurant is open Wednesday through Sunday.

· Uai Brazil opened at 315 Lehigh Ave, Palmerton, offering both a seated or buffet option. 

· Colombian Mex Restaurant opened at 107 E Union Blvd in Bethlehem, offering traditional Colombian cuisine. 

· Precision Ink opened at 161 W Berwick St. in Easton. 

· King Wing opened a location in Bethlehem at 129 E. Third St., serving wings and sandwiches. 

· Molinari's at 322 E 3rd St. in Bethlehem is re-opening, offering ticketed seating with an Italian menu offering. 

· Tony's Pizza & Restaurant opened a new location at 3417 Sullivan Trail in Easton. 

· Big Papa's Restaurant & Catering opened at 1236 Northampton St, Easton. Dale Koehler & Sons Farm will supply the restaurant with meat and eggs.

· Route 61 Hardware has its ribbon cutting at 635 Fountain St. in Ashland at noon on June 24.

· The Shenandoah Pharmacy will hold a ribbon cutting at noon, June 1, at its 33 N. Main St., Shenandoah, location.

· The Canalside Cup on Route 611 in Williams Township opens for the season May 13

· The Curious Plantaholic Nazareth has expanded into New Jersey with a second store at 20 Main St. in historic Clinton, Hunterdon County. the original store is on Belvidere Street in Nazareth. 

·  Childcare With A Purpose and Lehigh Valley Martial Arts are both coming to the shopping center on Easton Avenue in Bethlehem later this year. 

·  Within Harmony wellness center has its grand opening May 18 and 5 p.m. The center, which will provide services such as reiki and crystal energy sessions, is located at at 182 S. First St. in Lehighton

· Time 2 Talk Therapy Services will hold an open house June 1 at 521 Bridge St. in Lehighton

· Alter Ego Salon & Day Spa to hold grand opening on May 22 at 500 Broad Street in Emmaus

· Sephora at Kohl's to open at Whitehall Kohl's

· Juliette Bridals by Ivana has relocated to 161 Glenworth Rd., Pottsville and is having a "relocation celebration" on May 19 at noon. 

· Iqor has opened a new 30,000 square-foot call center in Allentown

· Life Advance Fitness at 436 State Ave. in Emmaus opens on May 11

· Grocery Outlet Bargain Market is open at 561 S. Broad Street in Lansdale, in the former Super Foodtown location. 

· A new mafia-themed bar named Capo & Co. Keg and Cork Kitchen is hiring staff in Emmaus. The restaurant is at 1375 Chestnut St. and will feature a self-tap wine bar. 

 

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