These markets are making me queasy. What can I do?

Dear Nancy,

I feel like I have to take Gravol each time I watch the markets. The up and downs are starting to wane on me. I'm trying very hard to "stay the course" but I'm getting anxious trying to hold on. What is an average investor like me to do? Signed Leo

Dear Leo,

Even for a professional adviser like myself, the volatility in the markets is difficult to watch. There are some days that the glaring red numbers staring back at me are hard to look at. But there is the saying, "This too shall pass".

What you have to do is to make sure that you have the appropriate asset mix for your objectives and risk tolerance. Now I know this advice is often given, but for good reason. You may want to re-evaluate the buy and hold strategy for some of your holdings. If you have a significant capital gain, does it make sense to take some money off the table and sell part of your position? Buying and selling is not an all-or-nothing transaction. Very often I buy or sell half of my intended amount.

You don't have to be fully invested all the time. Especially in volatile times like this, having cash on hand may be good if another opportunity comes along.

Another thing is that you want to get paid to wait for economies to improve. Check your portfolio for holdings that are not paying you a dividend. If it doesn't and there has not been some positive price growth you may be better off in a high interest account. One per cent is always better than any negative number.

If you are a do-it-yourself investor, maybe this is the time to seek the opinion of an adviser. They can keep the daily watch so you can avoid the Gravol.

Nancy Woods, CIM, FCSI, is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc. To ask her a question, send an e-mail to asknancy@rbc.com or visit her web site at nancywoods.com

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