The turbulence of the past few weeks in the world’s financial markets has been difficult for Canadian investors. We are experiencing a level of volatility that we have not seen in years. Over time, equity markets experience a series of ups and downs. The best way to deal with these market fluctuations is to remember your investment goals and stay focused on the long term.

With a properly diversified portfolio of investments geared towards meeting your financial goals, the day-to-day fluctuations of the markets should not affect your plan. If you find yourself distracted by dramatic headlines in the financial news, these steps will help you stay focused:

Know the potential volatility of your investments. This will help you maintain your perspective. Equity markets typically correct once every four years, and when they correct, they typically correct more than 10%.

Diversify your investments. Combining a variety of investments, including exposure to equities, fixed income and cash equivalents, with different characteristics helps to stabilize returns and reduce volatility.

Focus on the long term. The longer your time frame, the better chance your investments have of reaching their potential. If your goals are short term, you should not be in the market.

Don’t panic. Don’t sell just because of an investment decline. Perhaps the most common mistake an investor makes is buying too late and selling too early. If you sell at the bottom, you will lock in losses, and miss potential future profits. History has taught that good entry points into the equity markets are when there is panic, not complacency in the market.

Buy more! View this current volatility as an opportunity to buy your investments on sale.

Over the short-term, equity markets will likely remain volatile. If you are really uncomfortable with your investment portfolio, you should talk to your advisor to ensure your portfolio is suitable for your objectives.

The opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of HollisWealth. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.