Tuesday, August 25, 2015

Don't Freak Out Over Market Corrections!

This week, the Dow industrial and NASDAQ dumped a whole lot of value out of a whole lot of people’s portfolios. Yours truly took a pretty significant hit, as well. In fact, the way things are looking, it appears that rather than a simple dip in the market, this is the market correction that stock pros have been anticipating for the better part of two years now. First off, let’s get one thing straight: This is not a recessionary move. Neither is it an unexpected move. It isn’t unexpected, and above all, its normal.

Market corrections happen every so often. They aren’t necessarily indicators of poor performance, and they aren’t anything like the beginning of the end.  What they are is an opportunity. If you aren’t buying now, then it should only be because you don’t have the cash to do so. As an investor, if you find that the entire market has dipped in so dramatic a fashion as this, you should buy so that once the prices come back up, you’ll be on the positive rather than breaking even!

This market correction has been a long time in coming, and remember, it’s expected. Don’t overreact. Don’t sell thinking that the market is flushing down the toilet, because it isn’t. Soon, prices will stabilize, the market will begin to trend upward again, and those who have sold out all their holdings in a panic today will smack themselves for the lost opportunity at tremendous gains on the other side. Just be patient. This isn’t the end, its just the beginning.

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