A rough day in markets: five things to check before you call your banker

Short answer

On a rough market day, check five things before acting: what you actually own that moved, whether the move touches your goals, how much cash you can reach, whether anything crossed a limit you set, and what exactly you want your banker to answer. Most days the honest finding is that your plan is intact.

Why a checklist helps on a bad day

A falling market feels personal, even when it is not about you. The headline describes the market. Your question is narrower: what does this mean for what I own, and for what I am trying to do? A short checklist keeps the two apart.

1. What do I actually own that moved?

Start with your holdings, not the index. A broad fall may barely touch a portfolio built on bonds, cash or a few steady names, and may hit a concentrated one hard. Ask for the move in your own holdings, and the time the prices were taken.

2. Does it change the plan, or only the day?

Your plan has goals and a time horizon. A drop that does not change whether you can meet a goal is noise for the plan, however loud it is on the screen. Ask: is my plan still on track, and if not, by how much?

3. How much cash can I reach, and how fast?

Many hard decisions on bad days come from needing money at the wrong moment. Know how much sits in cash or can be sold quickly, and how long it would cover your spending and commitments.

4. Has anything crossed a limit I set?

If you agreed limits with your bank, such as a cap on any one name or a minimum held in cash, a fast move can push a holding past them. That is a reason to talk, not necessarily a reason to sell.

5. What exactly do I want my banker to answer?

Write the question down before you call. “Should I be worried?” is a fair start. “What changed for my portfolio today, and is my plan still on track?” gets a better answer.

What a good answer looks like

• It is about your holdings, not the market in general.
• It says what time the numbers are from.
• It shows where each figure came from.
• It keeps what happened apart from what someone thinks will happen.
• It is allowed to say: nothing threatens your plan today.

Calm is a finding, not a mood.

Quick questions

Should I sell when markets fall sharply?

No article can answer that for you, because it depends on your goals, time horizon and holdings. Use the five checks, then decide with your banker or licensed adviser.

What is the most useful question to ask my banker on a bad day?

Ask what changed for your own portfolio today, and whether your plan is still on track. It turns a general worry into a specific answer.

Why does reachable cash matter in a sell-off?

Cash you can reach lets you wait. Without it, you may have to sell at a poor moment to meet spending or commitments.

General information only, not personalised investment advice. Speak to your licensed adviser before acting.