There is a global pandemic!
The spread widens!
There is no cure to be found!
The market crashes!
There is a political crisis!
The outcome is unpredictable!
The market crashes!
There is blood on the streets!
All hell breaks loose!
What should I do?!
Should I sell and cut my losses?
What if they found a cure tomorrow or the spread slows?
What if the right prime minister gets appointed and the uncertainty disappears?
The market will rebound and I'll have to buy back higher!
Should I buy more?
What if the spread worsens?
What if the wrong prime minister gets appointed and the economy goes down the drain?
The market will fall further and I'll lose more!
What should I do?!
If this is how you feel, think about what the stock market has endured throughout history.
We have had 2 world wars, atomic bombing of Japan, the great depression, subprime crisis, the dotcom crash, sars, ebola, september 11 terrorist attacks, hurricanes, earthquakes and countless other disasters.
Yet time and time again the market will break new highs.
Time and time again the market emerges from the ashes and climbs the wall of worry just as it has always done.
Just remember the saying: "life will find a way".
There is a strength in humanity to overcome all obstacles no matter how difficult it may be. Eventually all tough times come to pass and recovery begins.
One must have faith and believe in the collective ability of mankind that life will indeed find a way. If on the off chance this time it's different and we all die of the virus, and all of mankind is extinct, then what difference does it make whether you lose money or not. Money wouldn't be of any use to us any more anyway if we're dead.
There is a difference between investing and gambling and it is this:
When you gamble, the amount of money you lose is gone forever.
When you invest, even if the stock market plunged, if the company is profitable, one day it will rebound.
Whether it is next week, next year, or 10 years later, nobody knows. But it most definitely will. And if your portfolio is diversified, chances are most of them will be profitable than not.
The only real reason why you worry is because you are worried that the man next to you is making more money than you are and you are losing more money than he is.
Investing is not about beating others at their game, it is about controlling yourself at your own game.
Hopefully this article will provide you with the clarity you need to make the best decision and the calmness to weather the storm.
However, if you invested all of your money into one stock and the company goes bankrupt, you are really screwed.
https://klse.i3investor.com/blogs/dantealighieri/2020-03-01-story-h1484655461-How_To_Be_Calm_In_A_Market_Panic.jsp
