📉 When the Stock Market Takes a Dive… The Do’s & Dont's.
- Cameron Steele
- Aug 4
- 3 min read
Updated: Sep 19
Markets go up.
Markets go down.
Sometimes they crash.
It’s all part of the investing journey, but when your KiwiSaver balance suddenly dips, it’s easy to panic. I get it. No one likes seeing their hard-earned money shrink overnight.
But here’s the truth: a market dip isn’t a disaster, it’s an opportunity… if you handle it the right way.
Let’s talk about the Do’s and Dont's when the stock market takes a hit.
✅ DO: Stay Calm
Market dips are normal. In fact, they’re expected.
Every few years, we get a correction. Every decade or so, there’s a crash. But history shows that markets always recover, and often bounce back stronger than before.
Your KiwiSaver is a long-term investment, not a short-term gamble.
❌ DON’T: Panic-Sell Your Fund
It’s tempting to “get out while you can” when the numbers go red, but selling during a dip is like jumping out of a plane mid-flight because of turbulence.
You lock in your losses and miss the recovery.
The worst returns often come from bad timing, not bad funds.
✅ DO: Keep Contributing
Keep putting money in, especially if you’re still working. Why? Because when markets are down, you’re buying units at a discount.
It’s like the stock market is having a sale, and your future self will thank you for grabbing the bargains.
❌ DON’T: Switch to a Conservative Fund in a Panic
Moving to a lower-risk fund after your balance has dropped means you’re selling low… and likely missing the rebound.
The only time to switch fund types is when your goals or time frame change, not just because things feel wobbly.
✅ DO: Talk to an Adviser
The market isn’t the only factor that matters. Your age, goals, withdrawal plans, and risk tolerance all come into play.
I can help you:
Understand what’s going on with your KiwiSaver
Avoid costly emotional decisions
Stay on track for your goals, even when markets dip
📈 Understanding Market Fluctuations
Market fluctuations can feel overwhelming. But remember, they are a natural part of investing. Think of it like the weather. Some days are sunny, while others bring storms. Just as you wouldn’t pack away your umbrella after one rainy day, you shouldn’t abandon your investment strategy after a market dip.
The Importance of a Long-Term Perspective
When you invest in your KiwiSaver, you’re not just looking at today’s numbers. You’re planning for your future. A long-term perspective helps you ride out the ups and downs. It’s like planting a tree. You nurture it over time, and eventually, it bears fruit.
Emotional Investing: A Double-Edged Sword
Investing can stir up emotions. Fear, excitement, and anxiety are all part of the game. But acting on these feelings can lead to poor decisions. Instead of letting emotions dictate your actions, focus on your strategy. This is where a solid adviser can make a difference.
Final Thought
The market dipping isn’t a mistake.
Reacting emotionally to it can be.
The most successful investors don’t avoid downturns... they ride them out with a smart strategy, solid advice, and a long-term view.
✅ Your Next Steps
Find out if your KiwiSaver fund fits your goals and risk profile.
Talk it through — I’ll help you stay calm and focused.
Conclusion: Embrace the Journey
Investing is a journey, not a sprint. Embrace the ups and downs. Each dip can teach you something valuable. With the right mindset and guidance, you can navigate the market’s twists and turns. Remember, your KiwiSaver is a tool for your future. Use it wisely, and you’ll be well on your way to achieving your financial goals.
By following these guidelines, you’ll be better equipped to handle market fluctuations and make informed decisions about your KiwiSaver. Stay focused, stay calm, and remember that every dip is just a stepping stone on your path to financial success.
Comments