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The optimism about a near-term rebound in the economy has faded. Economists at Charles Schwaab lay out three options to trade amid the current market volatility.

Key quotes

“Resist the urge to sell based solely on recent market movements. Selling stocks when markets drop can make temporary losses permanent. Staying the course, while difficult emotionally, may be healthier for your portfolio.” 

“Take your personal circumstances into account. If you need money in the next few weeks and months, then you may need to sell some assets to raise cash. If you’re uncomfortable with market swings, you may want to cut back on some riskier investments to reduce volatility.”

“Rebalance your portfolio as needed. Market changes can skew your allocation from its original target. It’s a good idea to review your portfolio for rebalancing opportunities at regular intervals, and is worth considering when markets have been very volatile.”