Have you been following recent news headlines about oil prices? Here’s a sampling:
Oil Prices Rise as Supply Concerns Persist – Wall Street Journal, May 24, 2016
Oil price hits $50 a barrel – could it now go on to $55, $60 or $65? – The Week, May 26, 2016
Crude futures stabilize after rising above $50 a barrel – CNBC.com, May 26, 2016
Oil Prices Explained: Signs of a Modest Revival – The New York Times, May 26, 2016
We were enjoying the effects of deflated oil prices for a while. Who doesn’t like paying less to fill up their tank? But prices have recently been restoring themselves, due to lower supply and increased demand. We can feel the result in our pockets. Reading the headlines does not necessarily make us feel better, either.
The situation can feel worse if you have investment holdings in oil. So what should you do?
First of all, go ahead and read the news stories if you want to. Being better-informed does no harm, in and of itself. But be aware of how you may be reacting emotionally.
At OpenCircle, we always tell our clients to keep their impulsive feelings in check when it comes to making investment decisions. Financial matters should be handled calmly, with a clear head, and according to a well-thought-out plan. A good plan builds in healthy diversification across asset classes, so that your portfolio is not overly susceptible to fluctuations in one particular holding. And the best plan is designed to meet your goals, both short- and long-term. The important thing, is to stick to it.
Sticking to your plan on your own may be challenging. It is a question of staying calm and keeping your perspective. To help you do that, it is good to talk to someone you trust who understands your needs and goals and can support you in achieving them.
Whenever we see news that feels like it could threaten the status quo of our lives, it is natural to want to do something about it. So, you can worry if you are so inclined, but before taking any action, talk to someone who will not fan the flames of your worries. Talk to a professional who can help keep the bigger picture in your sights. We encourage you to give us a call at 203-985-0448. We look forward to speaking with you.