Listening to the Chicken Little financial pundits scream “The sky is falling, the sky is falling,” it’s tempting to take your money out of the markets and stuff it in your mattress.
It’s not easy to watch the value of your investments sink like lead. However, the advice we gave in October still holds true. Investors who keep investing during a falling market can really pad their long term returns.
Try to remember that what happens from day to day, or even month to month, in the stock market is weather. As a long-term investor you should not be interested in weather, you should be interested in climate change.
And over the long term, investors who don't panic during the inevitable market downturns and stick to their target allocations will be duly rewarded.
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