With the market recording some of the biggest drops in history what should you do as an investor. First, DO NOT PANIC, the time to panic has passed. What is the core reason for your investments?
1. Provide for living expenses. Make sure you have sufficient cash to cover a longer period. Downturns like this can take years to correct.
2. Long Term Growth – sell the companies who will under perform and look for opportunities through undervalued companies.
Should I exit the market and buy back in when it bottoms?
Trying to pick the highs and lows is a mugs game. If you happen to snag one or the other, it is most likely a fluke. What we do know is that if you miss either just by a couple of days, you will under perform the market.
