We knew it was coming at some point, but that doesn’t make it any easier to stomach a stock-market correction. What to do?
If you are a passive investor – keep calm and carry on. Don’t check your investments all the time. You are in this for the long term and you have to expect some bad years along with the good ones.
If you are an active investor – it’s equally important not to panic! The trouble with being an active investor is that you have to check on your investments often and adjust your positions as needed. That means going back to the reasons you bought your investments and verifying that the investments are still what you want to hold. There may be some stocks that have been a great buy and are doing fine amid this turmoil. More than likely there are some stocks that have done worse than the overall market. For those stocks, is it time to dump a bad investment or trust that the stock will recover? Your call. It’s very easy being an active investor in a rising market, but a bear market will test anyone’s nerves.
If you want to get informed and become confident about your investments and your long-term investing goals, consider taking an investing course. There are many great courses out there for investors at all levels.
December 18, 2018