DON'T DO IT!! August 24, 2015
The stock market "correction" that we’ve all been fearing and
anticipating dependent on who you have been talking with, is now upon us!. We have experienced three (3) straight days of losses, August 20, 21, and 24, 2015. We haven’t seen a 10% stock market correction since 2011. In addition,
we haven’t seen a bear market
since the 2008-2009 credit crisis.
I’m sure you’re wondering just how long it will last, and how bad will it be? Guess what? NOBODY knows!
It’s also a really easy time to make some devastating mistakes.
As an investor, here’s what you don’t want to do:
1. Don’t panic. No need in freaking out at this
point, correct? What's done is done, it’s already happened, and we knew it was eventually going to happen. You MUST have the courage to "ride it out." If you're a long-term investor, a correction can be your friend! If you're a trader, well......
2. Turn off the business news talking heads. So many investors
start to watch the financial news at times like these, every waking moment. I had a former sales branch manager who likened it to watching financial pornography! The more you check your investments and
listen to the media, the worse things will appear.
3. Don’t focus on the correction. Corrections are
supposed to happen! We've been lulled into a false sense of security with a bull market which has lasted over six (6) years! WE WERE DUE! Again, for a long term investor it really won’t
matter in the long run. It’s only a small blip in an investors long-term
plan. The short-term isn’t important. Stay focused on the future
outlook of the economy and the markets.
4. Don’t think you or anyone else knows what’s going to happen. Let’s face it nobody knows what’s going to happen next, NOT EVEN ME!! Remember, don't look at, nor listen to, the financial pornography! The biggest mouths are usually the ones that know the least. Stick with tried and true ways to cope with market volatility.
Like my 91 year old mother has said for years, "this too shall pass." There’s no sense in making a stock market
correction worse by emotional and fear-based decisions.
Have the courage
to leave your investments alone to do their job.