Investing nerves
The market dipped. I have checked it 47 times.
From: Refreshing Instead of Sleeping
Dear Gym Bear, I said I was a long-term investor. Then my investments went down and apparently my long term is eleven minutes. Should I sell before it gets worse?— Refreshing Instead of Sleeping
A little perspective from Gym Bear
Dear Refreshing, I know the feeling. But giving your thumb a workout won’t tell you what the market does next. A falling balance is uncomfortable; that feeling alone doesn’t tell you which trade to make.
Revisit what the money is for, when you need it, and how much loss you can afford and tolerate. Money needed soon calls for different risk choices than money for a distant goal. Diversification can reduce concentration risk, but it cannot prevent all losses.
If your mix no longer fits your needs, review it deliberately, including any fees or tax effects of changes. If your situation hasn’t changed, use your written plan as the starting point instead of the latest headline. A scheduled check-in can give the refresh button a rest.
In your corner, Gym Bear
Write down what this money is for and when you’ll need it. Compare that with the risk you’re taking.