Motley Fool Money The Latest Correction
Feb 24, 2022
Joining the discussion is Andy Cross, Chief Investment Officer at The Motley Fool, who shares valuable insights on navigating market corrections. He emphasizes how frequent these corrections are and the challenge of timing the market. Andy highlights the impact of global events like the Ukraine crisis on market volatility and underscores the benefits of consistently investing instead of trying to time the bottom. He also encourages taking breaks from financial news to prioritize personal well-being during turbulent times.
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Market Corrections Are Normal
- Market corrections (S&P 500 drop of 10% or more) are common, occurring about every 12-18 months.
- These corrections are natural market resets and shouldn't cause panic among long-term investors.
Resist Timing the Market
- Trying to time the market bottom is tempting but often futile and stressful.
- Long-term success in investing comes from consistently buying stocks, not perfect timing.
Focus on Long-Term Strategy
- Avoid frequent trading, as it can lead to underperformance compared to the market.
- Focus on a long-term strategy and stay invested, especially during market downturns.