Investors in the stock market live with the unfortunate reality of enduring sharp declines that occur when the market experiences a profound drop. Nothing cools the nerves like watching the market fall, as every investor will wonder: “Is this the time when the market won’t come back?”
Resilience When the Market Seems Dark
Long-term investors need the courage to endure even when the market appears to be at its worst. I assume that long-term investors have more than five years before they need to access their investments. If you are less than five years away from your goal, you should not invest heavily in stocks.
How to Act When Market Changes Occur
How should an investor behave when the market is experiencing one of its thrilling rides that indicate a downturn at this point? To make a decision under any circumstances, the first step should be reassessing the companies you own to check if they still fit your overall investment plan.
Long-Term Investing Can Protect You
One of the few things we know for sure about the stock market is that it will rise and it will fall. However, no one has a clear idea of when either of these events will occur. A long-term investment strategy will protect you as much as possible during those times when the stock market declines and will create an opportunity for growth when the market rises.
Reassessing Investments to Ensure They Still Meet Your Needs
For all other investors, the best strategy after reassessing all the companies and ensuring they still meet the qualifications you needed when you purchased them is to stay in the market and let your great companies do what they do best. When the market recovers, you will be there with your great companies to participate in the recovery process.
Waiting Through the Decline by Staying in the Market
An old saying on Wall Street refers to the idea that when the market is down, you should buy, and when the market is up, you should sell. The wisdom of this saying is clear; however, executing it is very difficult and requires a lot of courage and confidence. Whether you feel confident about investing in a declining market or not, the main advice is to wait through the decline by staying in the market.
Source: https://www.thebalancemoney.com/the-stock-market-will-fall-dramatically-some-day-3140953
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