Every single time the stock market has a fairly drastic plunge the media gets into a frenzy about how the sky is falling and everything’s going to hell. It’s amazing how quick they are to tell people how bad it is and how everyone should run to their investments and pull all their money out.
The good thing, however, is that times like these also bring out the sensible people that can separate drops from disaster. GenerationXFinance takes a look at “A Visual History of the Stock Market from 1996-2007” and the results, as expected, are pretty typical. There are drops, spikes, volatile periods, and calm spaces. This is what money, stocks, life, everything does. There are ebbs and flows…valleys and peaks…
What’s important to remember is that – no matter how low the stock market has dropped (e.g. 2001) – it has a great history of bouncing back and recovering. If you’re in it for the long term, you will be just fine. Keep investing. Keep your money in there through the rough times, and you’ll be better for it in the end. As GenXFinance says, “Sure, the market may be a bit unstable right now, and we may certainly be headed for a time where the market is down more than its up, but that shouldn’t be of much concern to you if you’re investing for the next 10, 20, 30 or more years.”
I couldn’t agree more.
