In the past couple of weeks the Dow Jones has dropped from its all-time high. The last 3 days it has dropped almost 1800 points. That is almost 8% off of its highs in just 2 weeks.
Some people are panicking. Some people are heading for the exits. Some people are rethinking about investing.
My message to all of those people.
STOP WATCHING THE STOCK MARKET.
Last week, I wrote a blog post about how to not time the stock market. The same holds true.
For those people who are panicking I think this should put things in perspective.
The stock market has gone up 400% from its low on March 6, 2009.
In the past 15 months it has gone up 40%.
In the past 2 years it has gone up 50%.
For those of you who stayed invested we have had a WONDERFUL run. And it is possible that we will go into a bear market, which would be a decline of 20%.
But remember a couple of years ago when we had the WORST 10 days for the start of January ever. We were down 7% or so and people were panicking then. Yet we ended that year up over 20%.
What I am telling you is DON’T PANIC. Don’t sell all of your investments and head to the exits.
Hold fast. You will be fine.
The market could go down 20% from here or more. It is possible. Hell it is possible we have another bear market, but ask me if it will be that way in 10 years? NOPE. I think we will be much higher than we are today.
For those of you invested you should do it for the long-term. Be Ron Popeil. Set it and Forget it!