Economic downturns and volatile markets can make people nervous. Recognizing these events as a normal, although undesirable, part of the economic and investment cycles can help make these moments manageable. Here are some tips for surviving market turbulence during unpredictable times.
Just getting started with investments? Read our blog, 4 Steps to Start Investing: A Beginner’s Guide.
Tips to stay in the market
Don’t panic. Some people may be tempted to bail out of their stock investments if markets are having a particularly rough ride. Selling solely because the stock market tumbles may be the worst thing to do.
Stay invested. The chart below shows that pulling money out of the market — even for just a few weeks — could really cost you in potential investment gains. If missing the 10 best days sounds implausible to you, consider that in the past 20 years, seven of those best days happened within just about two weeks of the 10 worst days.