The recent sell-off in the stock market indicates that many investors are running for cover. And why not? After seeing markets tank in March in response to the COVID-19 pandemic and then hit new highs just a few months later, investors no longer have confidence that they can predict what will happen next. (Of course, no one ever knows, but that doesn’t mean people don’t try to guess.)
Are you feeling afraid regarding your investments? Are you wondering if you should take profits now or hold for the long term? And what if you’re wrong? Surely, you don’t want to lose money, but you also don’t want to miss out on another market surge.
We asked three successful investors — and Motley Fool contributors — if they’re scared of the current market, and if so, what they’re planning to do about it. Hopefully, you can use their wisdom to stay calm and focus on your long-term investing strategy, which, after all, is how long-term wealth is ultimately created.
An ever-resilient market minimizes anxiety
Rich Smith: After nearly a quarter-century of investing in the stock market, I’ve lived through Y2K, the dot-com bubble (and its burst), the financial crisis of 2007-2008, and now, the COVID-19 pandemic. Despite all these crises, I’ve watched the Dow Jones Industrial Average and the S&P 500 both rise fourfold in value, and the Nasdaq grow nearly eightfold.