Were Those Tremors in the Market?
I’ve lived in California all my life, so I know a thing or two about earthquakes. I experienced both the Loma Prieta quake in 1989 and the Northridge quake in 1994. And probably a dozen or so smaller shocks I wouldn’t even get out of bed for. I’ve also seen seismic shocks in the market. The stock market that is. I’ve experienced the dot com bust and the more recent Great Recession. This past week’s market activity was a gentle knock on the door signaling the return of Mr. Volatility. Like the loonie uncle that comes around once in a while for a visit.
So with yesterday’s 1000+ point drop in the Dow, we are officially in “correction” territory, or 10 percent lower than the all-time high.
But you, the sage and patient investor are not worried or much concerned. You’ve been expecting this- this is no surprise. The market has been on a tear for many years and you have enjoyed the swelling of dollars in your account. But alas, sooner or later, the bull always gets tired.
But you, the wise and even-tempered investor know better than to do something rash. Like sell.
You will stay the course, even when things get worse. In fact, you may even back up the truck and load up on index funds with the dry powder you have stored away. Very nice.
You are well diversified. Perhaps owning alternative investments that are uncorrelated to the stock market. What?! You’re not? Well then, sign up on the email list and follow this blog.
There are so many great bloggers out there and too many posts to read. Here are some of my favorite ones.
JP Livingston at The Money Habit puts the recent market drop in perspective with What to Do During a Large Stock Market Drop.
Over at Optimize Your Life, Matt talks about how successful people have imbalanced lives and failed relationships. Successful Careers and Failed Relationships.
No one likes to fail, but failure is part of the learning process. Success doesn’t come overnight. A Financially Savvy Doc writes You are Going to FAIL.
DocG over at DiverseFI puts a financial spin on Doctor Seuss in an epic post – Oh, The Money You’ll Save!
The Physician Philosopher speaks to knowing your inner self. Will you be ready for a bear market? The Fifth Philosophy: How to Slay a Bear Market.
The Wall Street Physician addresses the age old question- Paying Down Student Loans Versus Investing.
Jason Fieber over at MrFreeat33 talks about his experience with The Scarcity Mindset Versus the Abundance Mindset and how he incorporates both.
And if you haven’t read my review on the White Coat Investor Course, you can do so here.
Well that’s it folks. Have a great weekend. I’ll be watching the Olympics. Oooh.. Nathan Chen, that’s gonna hurt.
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