One question that I get asked often in times of major market declines like the one we are in is, “Is it time to sell?”. It’s easy to say “NO!” but there’s a much lengthier discussion to be had.
Over the last month and a half or so we have essentially grounded to an economic halt here in the United States and globally. There is a lot of fear and anxiety.
Times like these when you look on the screen and you see the Dow down 10% and the next day it’s up 5% can be very frustrating. I get it!
The frustration is normal, although, freaking out is not! And what I mean by freaking out, is effectively saying, “Hey, I have to get out of the market, I have to sell everything.”
You’re faced with this overwhelming desire to just “stop the pain” because that’s the way that our brains work. You end up being faced with three decisions.