Well, with the stock market in Australia losing nearly $60 billion in the last few days and the US stock market losing over $1 trillion ..... it is time to panic!!
Oh no!! (covers face with hands) What have I advised you all??
Dear me! All my posts about the stock market being a wise investment now look really bad!
Gosh! How stupid was I!?
(shallow breathing and nervous shaking) Soooooo embarrassed!
Actually, nothing of the sort and none of the above is true. It is NOT time to panic - in fact quite the opposite.
You see, market corrections (crashes) both big and small are a normal and expected cycle of the stock market. Folks who invest wisely in shares totally expect and even look forward to market corrections/crashes. (Really? Yes, really)
|When serving out dinner, also serve some for the next|
day's lunch too. Frugal much! This will easily save you
over $1000 a year in lunch money.
I have not sold a single share this week, but I am gearing up ready to buy more of the quality shares I already own while they are cheap. I am also keenly awaiting the dividends to pay on my existing shares very soon which will occur despite this market correction. I am as calm as calm can be.
How on earth can I be calm? Simply because my investments are wise, considered, boring, stable, income producing stocks which historically weather decades of market down turns and bounce back just fine. The only thing I am annoyed about is that I wished I had saved more money so I could spend more on quality stocks whilst the prices are low.
As Warren Buffet is quoted as saying - "When others are greedy be afraid and when others are afraid be greedy" - or something like that. This is exactly what is happening now.
Take care folks and stay nice.
Mr HM (Phil)