So the market had a tough week and an especially tough day Friday, but I have never seen so much freaking out in my life.
If you look back at relatively recent market history you see that the market has an average of 14% intra-year pullback since 1980.
Some years were much worse obviously and a few years were much less severe (chiefly 2017). But the point remains that market volatility is normal, and a lot more severe than what we are experiencing now. If you have just started investing since 2008-09, you might be in for a rude awakening when true volatility returns. Prepare emotionally to be ice cold about it and not make stupid, rash decisions.
Last week doesn’t mean we are in the throes of recession, and it doesn’t mean the market is crashing, and it doesn’t mean you have to reinvent your portfolio (unless you were already invested poorly).
Take a breath, look at history for context, and remember that when this thing does fall significantly, it will be on sale for all of us who aren’t panicking. Hope you’ll be there buying instead of stuffing what’s left of your money (after selling low) in your fallout shelter.
Submitted February 04, 2018 at 01:28AM by Holdyourbiscuits http://ift.tt/2nDgX63
