The stock market can be fun but it can also be heavy on your mind. Seeing your hard own money decrease rapidly plays tricks on your mind. No one likes to see a decreasing portfolio, or do they?
Everything depends on how and why you step into the stock market. Did you step in it for a short time profit? If so, you probably already sold them, possibly with a loss. When you enter the market for your retirement in 10+ years then there is nothing to fear. You can safely sit out current crash and sell on a high within 5 – 8 years. Entered the stock market for a profit in the mid long term of approximately 5 years? At this point you have to carefully consider your options. It is likely that you can wait and sell it in about 3 years. You will have a high possibility of making a profit in this time, or just a slight loss.
I’m evolved in the stock market, which is fun and, sometimes, very painful – Regis Philbin
Your timeline will determine whether or not you can wait it out. However that is not the only factor. If you think about you can easily remain in the market. But the question is can you stomach it to stay in untill the recovery has been finished? If know you wont, then it is better to take a small hit now and look at something else to do.
The stock market isn’t for everything. It is at this point, during a crash, that people will realise if they are made for it. One last tip is that during these ‘bad’ financial times the most millionares are made. All businesses are in bad weather right now. Even the best companies out there are suffering now. However in the long run they will end up better. Buying in bad times can mean the difference between a small profit and a big advantage.
This article isn’t meant to propose you to buy shares, but to give you another look on the current market. It may look all bad, but it can be a possibility for your future success. We will leave you with an additional quote from Warren Buffet:
Be fearful when others are greedy, be greedy when others are fearful.