Another big drop in the markets today. The TSX fell a bit more than four percent and the American S&P500 dropped almost seven percent today. I’ll admit I wasn’t too upset that my “flat” prediction I made after the S&P downgraded U.S. government debt was very wrong, since I was able to do some more buying.
Today’s market drops were bigger than last Thursday and add on to what has been a couple of very bad weeks in the market.
It might be tempting to bail out of the markets if you are nervous about your investments, but that would be a mistake.
Stay the course.
Don’t sell anything and keep on making your regular contributions.
Here is an excellent, easy to read post on market volatility and how your asset allocation should reflect your risk tolerance. Thanks to Mike @ Oblivious Investor for pointing out that post.
Here is a post I wrote back in 2008 about how to handle market volatility which still holds true today.
4 replies on “Another Bad Day In The Stock Markets, But Don’t Sell”
One way to look at it is that Wall Street is having a fire sale at the moment. The time to buy is when everyone is selling.
Great, short and succinct post. Absolutely a fire sale (depending on your term outlook). Happened in 2008, happening all over again. Great solid companies at discount prices.
I totally agree. My personal discount all star is Sun Financial right now. Trading at 9 times earnings, with a 5.7% dividend. Great diversification, awesome entry point for a stock I want to hold long term.
@Jake – Thanks.
@My Uni $$ – Good luck with SLF!