Should I panic?
The stock market is volatile and for many nurses staying invested can be challenging.
Human behavior very often makes people want to sell at the wrong times.
When something starts losing value it can be very tempting to start selling to hopefully avoid losing too much.
On top of that the media channels seems to present more and more negative or sensational news which equates to stories about how the economy could be crashing and stories about the risk of being invested in the stock market.
We now that the stock market historically goes up over extended period of times and even then human behavior very often gets in the way of staying invested for extended periods of time.
Let’s look at some numbers to see how daily or weekly market changes
There is approximately 252 trading days every year in the United States which means that someone who is age 45 and is expecting to retire at 65 has 20 years until retirement.
20 years equates to about 5042 trading days where the market is open so when the market drops 4% on a Monday there are still 5041 days left to stay invested.
1 day is also equal to 0.02% of days left for such a specific account to stay invested so it might be time to be cool and think long term.
Nobody can predict what the market will do the next day, the next weeks, the next months or even the next few years but understanding history and understanding the power of staying invested over longer periods of time can be extremely important.
Learn more about building a portfolio that fits your risk profile, time horizon and let us help you get efficient with your investments.
Written by CreativeNurse team
2016-16521 Exp. 1/18