SCARY WEEK . . . THERE WILL BE MORE

Scary Week, Right?

 

This week has been a shock for many, for me too. This is the first week after long bonanza in the markets where values ​​fall, passing the dreaded 10% mark, therefore falling into the category of correction and, most alarming of all, opening the door to uncertainty if the stock market continues to fall and enters a recession changing the trend. Everything sounds very alarming, but it has really happened before and will continue to happen . . .

 

What do the Experts Say?

 

Of course I do not have a magic wand or a crystal ball, nor do I try to do anything differently. As the big investors say, the best thing is to do nothing, Warren Buffet or Tony Robbins, they always talk about this and we have been waiting for a long time for the upward trend of the stock market to change; there are innumerable articles that for many many months have been announcing this, without knowing it for sure, nobody knows, just because the market was reaching maximum values . . . So this was expected, it’s not pleasant but it should not be a surprise. . .

Better option, don´t do anything . . .

What to Do? Probably Nothing . . . Or not Much.

 

What I do personally, should not be what you do, but I tell you what I have done. In January, well before this week of drops, while doing my annual rebalancing of the portfolio, I decided to adjust the values ​​a bit more in line with my proposed retirement date, which causes the percentage of shares to fall slightly and therefore, my portfolio became a little more secure before a possible (or imminent?) crash. In any case, I continue with a very high percentage of shares playing on the stock market and I will continue to maximize my contributions to retirement plans. So I’m not doing much, I’m not leaving the stock market, only minimally protecting what has been earned this period and enduring the storm no matter what happens. Remember the patience of water and ignore the noise.

Don´t be like Icarus, don´t get burnt . . .

Do You Feel a Bit Better?

 

I do not know if you feel a bit better or not, but you can´t time the market and get in and out because you are afraid of losing everything. These drops have always happened and they have always recovered, look at any historical chart of the Dow Jones or the S&P500. If you get out, you will never be able to recover what has been lost, you will never know when to enter on time, you will not be the first Icarus that in an attempt to fly very close to the sun got his wings burnt. Breathe and enjoy the storm . . . When the calm returns your net worth will have risen and you will be closer to your goal. It is the only way to win the attack of the bear (if it comes . . .), by holding.