Market corrections & bear markets are hard, specifically if you’re into the first cycle of your investment journey.
By far, you’re likely to see stocks going up & people making easy money.
However, the bear markets kick in & now you’re into the roller coaster which you thought will forever go up is in fact heading down fast.
Let the highs neither overwhelm nor the lows underwhelm you.
It’s important that you consciously avoid checking the daily price movements in bear markets unless:
1. You’re having cash in portfolio & are looking for opportunities to accumulate stocks.
2. You’re a portfolio manager, research analyst, broker or your business/profession depends on stock market.
You don’t have the liberty to check your real estate prices & even if real estate prices are somewhat stagnant since more than a decade, most people haven’t sold it out.
However, since stock prices change every second, people panic & sell out their earmarked long term investments within months of buying.
Rather than checking stock prices daily & getting anxious, the better way is to increase your research time during bear markets.
This is the period of maximum opportunity & you’ll find ample of quality businesses at cheap valuations.
Another way to survive the bear market is patience.
No matter how bad is the bear market, there’s always a bull market lurking around ready to make all time highs.
Always remember, there’s a light at end of darkest tunnel.
There are always better days ahead.
