OK, the markets have been a little ‘crazy’ recently. People Panic.
Maybe you panicked?
Remember these things:
- Since 1900 there has been about 34 Bear Markets – since 1947 there has been 14
- On average, every 3 years there is a Bear Market, in the last 50 years or so, once every 5 years
- The average market drop is 33% – Roughly 1/3 of the time the drop is 40% or more
- A Bear Market, on average, lasts 1 year.
The brain reacts in survival mode when the market drops – it acts like Fight or Flight – the brain operates this way so you need to recognize it, interrupt the pattern, and realize that you can control your emotions.
Remember; a Bear Market is when the stocks go on sale! Think about it, when clothes, shoes, electronics, cars, homes go on sale, you’re happy because you’re getting a bargain – same with stocks! You get a deal on a good stock!
Remember also; for 200 years or more – American Businesses find ways to resolve problems, they evolve, innovate, become more profitable…. the population grows, there is inflation, productivity and technology improves, etc.
(reference: Unshakable By Peter Mallouk and Tony Robbins)