What I did During the Long Weekend
I recently moved to a new place. I wanted to be closer to work so I can save gas and live closer to my girlfriend. After I moved in, I had a hard time with my DSL connection. So my only connection to the internet was at work.
The biggest thing I saw last week was the doomsday report of how the stocks are tanking, and how we’re going to lose all our money. Since I have a lot of investments in my Roth IRA and my individual investment account, my portfolio has taken a massive hit. And thanks to the Feds lowering the interest rates, my savings account gives me a lower APY on my savings. So it seems like all my investments are either losing money or making less money.
Back in the day when I was a trader, I would freak out about this. I would let my emotions take control, and I would start short-selling and selling my laggards. My old habits almost got the best of me the past week. But I kept my cool. I think not having to constantly read about the current market conditions helped me—thanks to my no internet connection.
Once I got back my wits, I reminded myself investing is a long term deal. I was tempted to sell off some of my stocks, but I held on. I trusted my picks. I’m going to see how they’ll fare till the end of the year.
A correction or even the bear market can last only a few months. So whatever started out Jan 2008 might not be the same for Dec 2008. Who knows, maybe the market will make a strong comeback at the end of the year. We’ll never know, we can’t predict the market.
So what’s the best thing to do in a market like this? If you trust your investments, turn off the TV and computer. Don’t let the Chicken Littles control your emotions.
Stumble it!
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I agree. My mom is a personal finance analyst and she taught me to trust time. I have a Roth IRA for myself and a Coverdell account for my daughter’s college. I don’t look at what they’re doing I just keep investing every month.