Wow. Hold onto your hat, the markets are in for a rough ride these past few days! If this is the long-predicted “correction”, or even a recession, then it will mark the first time I’ve weathered this kind of a storm before….at least, since I’m now paying attention to my portfolio. Yes, I had stock in the 2008-2009 timeframe, but the balance was low and I was so ignorant about all things financial that I just didn’t pay any attention.
As much as possible, that’s the approach I’m going to take now. In fact, it may take more effort on my part to ignore the ups and downs as I’m waiting for the time to come before my husband and I start drawing down our portfolios. I am a follower of JL Collins’ great advice in his book, The Simple Path to Wealth. One thing that he helped me to understand is that the bear market doesn’t happen that often or last that long. This was new information to me, since the media seems to focus on only two things: being in a recession or preparing for the next recession. Fear sells, I guess.
In the long run, the last two days don’t really mean much. I hate to see my hard-earned gains go down the toilet, but since (as Collins points out), the market always goes up, and since I’m not counting on my 401K funds at this point anyway, it’s business as usual.