It never fails:
The stock market is going up, and the media shows over and over pictures of "happy" traders at the stock exchanges. The market goes down, and then they change the photos to sad and depressed traders.
Today, the stock market went down, as it has for the last few days.
And, as usual, the media is filled with pictures of sad traders. Here are a few reminders:
- Whatever happens with the market should be already considered in the amount of risk that you take in the first place. A well diversified, risk-appropriate portfolio is designed with the ups and downs in mind.
- Investing is a long-term (10+ years) proposition. If you don't have 10 years to invest in the stock market, you shouldn't invest in the stock market. Period.
- The mood of traders should have no bearing in how you feel. You're not a trader, you're an investor.
- You can't control the market. You can (and you should) know how much risk you're able/willing and need to take. You can control how much risk you take.
- The media is in the business of making people feel a)Happy when the market's up, so they pay more attention to them and their advertisers and b) Anxious when the market's down, so they pay more attention to them and their advertisers.
- The talking head on the TV is not a financial advisor. She has no idea about your situation, he should have no voice in how you invest. Only you and, hopefully, your financial advisor can (and should) discuss these issues.
- You should have a fiduciary, preferably fee-only financial advisor that you trust.
If you don't have a fiduciary, fee-only advisor, I'll be very happy to work with you, or recommend you someone I know and trust if we're not a good fit for each other. Please let me know if you'd like to talk. Schedule your call here: http://miguelgomez.link/schedule