Let Your Stomach Be Your Guide!

Times of adversity are when we learn things about ourselves.

If you own individual stocks, you’re learning something about yourself right now.

The question you should ask yourself is: “Can I stomach owning individual stocks?”

Are you losing sleep at night thinking about the stock market?  Are you feeling physically ill, in a literal sense, when you look at your brokerage account?  If you answered “yes” to either of these two questions, you might want to go with an index fund.  It won’t make you immune to some pain, but it’s not as volatile as owning, say, Roku (NASDAQ: ROKU).  I talk about index funds in The Stock Market is For Everyone; they are one of the best vehicles to wealth there is!

As we approach a new year, this is something you definitely want to address.  Please only do what you are able to live with.

I happen to have a very high risk threshold.  It’s just the way I am, so it works for me.  Don’t get me wrong – I don’t like losing money any more than you do.  But I can sleep at night, and I can stomach the volatility.  That’s not for everyone.

Do what’s best for your peace of mind.  Wealth without health is, for all intents and purposes, useless.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

How Long Do Stock Market Corrections Last?

Hi, friends.  A short post this evening, as we in the U.S. ease into the Thanksgiving holiday…

So…corrections.  What are they?  Are we in the midst of one?  How long do they last?

The definition of a correction is when a stock market average drops by 10% from its high.

Currently the Dow is down around 7%, the S&P 500 is down 8.5%, and the NASDAQ is down 13%.  So yes – we are in what can be termed a correction.

How long can we expect this downturn to last?  It’s impossible to know for sure, but if history is our guide, the typical correction lasts three to four months.  When you consider that the market peaked in late August, we will probably be in sell mode for the rest of the year.

Stay the course.  Buy and hold.  You’ll be glad you did!

I wish all of those celebrating a happy and safe Thanksgiving Day!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)