Mar 3, 2020
No pain, no premium.
The unfortunate reality is that to benefit from the returns of financial markets (especially the stock market) we have to be willing to accept the inevitable risk of short term declines.
Declines and periods of volatility happen regularly and are a normal part of investing.
The ups and downs can go on for weeks and months, which can be psychologically taxing, even when it’s a normal part of the market cycle.
The best thing you can do is to develop a plan AHEAD of time and then remain disciplined.
Why?
Because panic-driven reactions don’t lead to smart investing decisions.
The biggest mistake investors can make is not having a plan ahead of time and/or not remaining disciplined.
Tune into this week's episode for my complete thoughts on dealing with market corrections.