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These are the Markets that Test Your Nerves and Stomach

//These are the Markets that Test Your Nerves and Stomach

These are the Markets that Test Your Nerves and Stomach

We are only two weeks deep into 2016 and I can’t believe how nasty the markets have been!  To say gut wrenching would be an understatement.

YTD DJI YTD S&P

While looking at the charts hurt that feeling is dwarfed when you actually sign in and see your accounts significantly lower.  There are a few things that give me some solace.

I am Relatively Young so Who Cares what the Market Does Today

Does it really matter what happens in the market today? I am only 34.

all S&P 5yr S&P

I have a lot of time to weather the bad, gut wrenching times.  If you are older, this may be a good time to give some thought to the question of your risk tolerance and asset allocation.

Warren Buffett’s Old Adage

It has been quoted and talked about, ad nauseum, but one of Buffett’s most famous quotes always makes me feel better:

Be Fearful when others are greedy

It is a reminder that better times are ahead.  Maybe those better times are not tomorrow, or next week, but at some point in the future you will look back and think, “wow, I wish I bought when I was terrified.”  How many people do you know who would have loved to have buy almost any stock they could in 2009? 2002? 1989? etc.

 

So all in all, DO NOT PANIC!

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By | 2016-02-22T13:42:37+00:00 January 18th, 2016|Investments|0 Comments

About the Author:

Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

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