1. Fear and hysteria are blinding investors to long term market values
2. No one knew in advance this was coming and for the most part there has been no where to hide.
3. The past is the past . Don't focus on how much you portfolio or net worth has "lost" (unless you have cashed out you have not realized any losses ). Focus on what you nave now.
4.It is okay- normal- to have some fear and anxiety.
5. Focus on what you can control- diversification, low expenses,etc. A recent study reports that index (passive) funds outperform active funds by 4% per year over time when considering tax efficiency,costs,turnover etc.
6. Keep decisions in context of your long term financial planning goals.
7.Be an "adult" investor- one not ruled by emotions which can lead to poor decisions.
8. Cash is not a long term investment- it is a returns "smoother" . You can't accomplish long term planning objectives with cash.
9.Don't think that a decision to capitulate( to sell) will relieve your anxiety/fear. You will just transfer this to the decision of when to get back in the market. There is no bell that rings at the bottom . Remember that the average 12 month return from market bottoms is 32.4%.
10.Despite all the negativity and concern about the direction of the economy/country, optimism is the only realism.
