What should you know?
We know turbulence is a normal part of the investment journey. Using history as our guide, you can expect to see your investments temporarily drop in value by 10% or more roughly every year and by as much as 50% once a decade.
It is one thing knowing this, and another thing dealing with your emotions when it actually happens.
The following checklist is designed to give you peace of mind, and the confidence to remain calmly focused on the future, the next time you feel anxious about your investments.
If you can answer “Yes” to all the questions you know you will be alright:
Why should you care?
Successful investing requires the resilience to calmly stick to the plan through all ups and downs.
Nobody knows when downturns will happen, how deep they will be, or how long they will last, before markets resume their long term march forward.
The only solution is to remain patient, calm and invested until the turbulence passes.
The next time you feel investment anxiety, based on what is going on in the world and outside your control, go through this checklist to remind you that, when you put things in true context, you have no real cause for concern.