We’re only human: in the midst of all the ups and downs of the market in recent months, it’s natural to consider doing something rash, like dumping all of your exchange traded funds (ETFs) or chasing trends out of sheer desperation.
But don’t!
The U.S. may be in a recession, the Federal Reserve keeps cutting rates to avoid one, credit is on the verge of collapse and a major investment bank is on the verge of collapse, but really – try to stay calm. Easier said than done, we know.
But many financial advisors agree that the wrong move is to panic and abandon the stock market or to sell stocks and go running to bonds or start stuffing their cash between the mattresses, reports Alina Tugend for The New York Times.
Just as you don’t want to get overly excited about market performance and make any decisions based on the hottest new trend that will allow you to retire at 35, there’s the flip side: you don’t want to make decisions based on any of the doomsday scenarios you’ve been cooking up in your head.