Last week, especially Friday, was tough on investors. I looked at the market around 2pm and saw it down about 300 points. Later that night I was surprised to hear it was down over 500 by the close. The market itself is now down over 10%, and the news, as usual, is pulling out all their tricks to get you emotionally charged up and act on those emotions. I am here to provide a little bit of reasoning to the stock market. Read below for 4 tips to stay calm when the market is falling.
4 Reasons to Stay Calm When The Market Is Falling
Corrections Happen All Of The Time
A correction is when the stock market pulls back 10%, which is what has happened after Friday’s drop. How important is this? Not at all. Corrections happen all of the time. In fact, these drops happen on average of once per year! It might seem scarier now because we haven’t had one in close to 4 years. In other words, we have been overdue.
So before you get scared thinking that the sky is falling, just remember this is a routine thing that happens all of the time in the market. [Read more…]