It’s a well-known saying in the industry, but it holds true every time the market drops. The stock market is one of the only places where when things go on sale, people run for the exits. For almost every single investor out there, lower stock prices represent a better entry point and a buying opportunity.
Here’s what I’ve been reading this morning:
‘The Stock Market’s Drop is Hitting 401(k)’s Harder This Time’ – Anne Tergesen – The Wall Street Journal
- For a lot of people, it’s tempting to buy into whatever has been working in the market. For target-date funds, a very common investment selection of 401(k) holders, increasing equity exposure over the last handful of years has left them more exposed than before to the current market drop.
‘How to Not Panic’ – Nick Maggiulli – Of Dollars and Data
- Like in the movie Inception, if someone tells you not to think about an elephant, what do you think about? An elephant. Similar in markets, if someone tells you not to panic, you might think about panicking. Well, Nick is here to help you truly NOT panic with his latest post.
‘Only 18% of Americans Plan to Increase Their Stock Market Investments This Year’ – Carmen Reinicke – CNBC
- Tying back to this morning’s opening comment, how do a lot of long-term investors get ahead of the rest? They buy when others don’t want to. Right now, only 18% of Americans plan to increase their stock exposure. What does that tell you?
‘What We Should Remember About Bear Markets’ – Joe Wiggins – Behavioural Investment
- Bear markets are extremely challenging for investors. Emotionally it gets difficult to watch your portfolio lose value. However, there are only bull markets because there are also bear markets. They HAVE to exist. Joe reminds us a few things to remember about these challenging markets.