Motley Fool Money Investing When You’re Down
Feb 5, 2022
In this discussion, Robert Brokamp, a Certified Financial Planner and retirement expert, shares valuable insights on navigating market downturns. He emphasizes the importance of maintaining a long-term perspective and diversifying investments. Listeners learn about the risks of premature selling and the benefits of a disciplined buying approach. Brokamp also advocates for aligning investments with personal financial goals, stressing the value of cash management. His strategies offer a roadmap for both new and seasoned investors looking to make the most of challenging times.
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Assess Your Situation
- Consider your life stage and goals before reacting to market volatility.
- If you're accumulating wealth, market downturns offer cheaper buying opportunities.
Market Volatility
- While market drawdowns are normal, the current one's speed and intensity differ.
- Stocks are experiencing larger price swings (10-20%) in shorter periods.
Resist the Urge to Sell
- Avoid selling stocks impulsively due to market downturns.
- Resist the urge to exit the market when facing losses.