New to the market and freaked out by recent events? Take a deep breathe. Read this.
“Dear New Investors: This Is Just What Markets Do”
“There is absolutely nothing abnormal about what is going on here. Most of us have to save somewhere, and history suggests that stocks are the most accessible route to getting the returns you will need to retire someday.”
“The impulse when the stock market falls hard for a few days in a row is to do something. Anything. Our life savings are often on the line, after all. But that’s the idea: Stocks are most useful for long-term goals. So unless those goals have changed in the last few days, it probably doesn’t make much sense to overhaul an investment strategy based on a blip of market activity.”
New York Times, Your Money Column, “6 Tips for Investors When the Stock Market Tumbles,” December 7, 2015