I cannot believe the amount of worried/panicked Tweets, Facebook posts & Articles I have seen the last couple of days (especially from people in the personal finance community).

Everybody breathe.  It’s going to be okay.

I’m going to break this down for you: Markets go up AND down.  Crazy right?

The last little while has been an exceptional run for the markets, and now it looks like a correction or perhaps even a big pull could happen.  THIS IS NORMAL.  It has happened before and it will happen again.  What should you do? NOTHING!  Stick to your plan.

Everyone knows the phrase “buy low, sell high” but so few people actually follow this advice.  Don’t get me wrong I GET IT – holding during a big drop can really test your nerves…but PLEASE FOR THE LOVE OF GOD – don’t fall for the sky is falling routine – you will be better off holding (or buying more during a big dip).  If you are close to retirement or  the phase of your life when you need to start withdrawing funds – chances are you have already adjusted your portfolio accordingly and have nothing to worry about – and if you haven’t then why are you reading this post – you clearly don’t listen to good advice:)

Don’t worry about timing the market for good buys.  Just remember:

TIME IN THE MARKET >>> TIMING THE MARKET 

Keep finding solid companies, with proven track records and don’t worry about the rest of the noise.  Of course you would be better off buying a solid company at its low point – but SPOILER ALERT you don’t know when that will be – and neither does anyone else.

If you routinely look at your portfolio and get excited or upset about hourly, daily or weekly fluctuations, you are doing it wrong.  Find companies you believe in, and will let you sleep well at night.  If you are making decisions based on daily stock price  fluctuations you are not an investor, you are a gambler.

Sorry for my little rant – but my news feeds are seriously filled with panic, and people asking insane questions about what they should do.  My answer:

Sit tight and don’t do anything you will regret it.  You have a plan (obviously since you are reading personal finance blogs) so stick with it and you will be fine. Now ignore the noise and enjoy the rest of your day!

 

 

 

 

 

 

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