This has been a tough week for stocks. According to Deutsche Bank, in the last six days we have just witnessed the fastest 10% decline from a peak in the S&P 500.
During times like this you must be cautious making investment decisions. In fact, often the best response is nothing or to do the exact opposite. To quote Warren Buffett, the Oracle of Omaha, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”. It can be difficult to invest in the market when everything is down, but this normally has been the best time to do so.
Now is a good time to develop or review your financial plan. It can help maintain a long-term perspective and serves as an anchor when the market is rough. Just remember like every past correction this too shall pass. The good news is apparently it happens faster these days!
“The greatest destroyer of wealth is short-term circumstances frightening people out of their long-term plans” – Peter Lynch
