We’ve endured a 10% drop from the market high on January 26th. This is what’s technically referred to as a “market correction”. Market corrections are extremely normal and usually occur semi-regularly throughout every market cycle. It had been around 2 years since our last correction, making this one about a year past-due. I’m not extremely worried about this and I don’t think you should be either (unless you’re a short-term trader).
It doesn’t matter what state the market is in, there’s always somebody out there saying “i told you so” and guaranteeing a dip, crash, spike, sell-off, balloon, bubble, or whatever fun and exciting word they come up with. Those people are usually selling something and you should take their words with an entire 26 oz Morton can of salt.
The fact is, there are far too many variables that affect how the 150 million people investing around the world will buy and sell shares of stock to know exactly what to do and when to do it. There aren’t any cheat codes or fail safes out there. Plenty of crazy people will be out there tickling your ears with their “can’t miss” strategy. Don’t listen to them.
What you need to do is talk to a real advisor that helps you invest with regard to your overall financial plan. If you’re investing for the long term, your plan will assume dips and volatility and that will ease your fears because when markets get a little crazy:
If you don’t have a plan, make sure you meet with someone who is selling a service and not a product. Schedule a time to meet with me and we can launch an investment strategy that is part of your plan.