Time to Panic?
Another Black Monday?
Time to Panic?
October 19, 1987, the market dropped 500 points earning that day the name, “Black Monday.” Are we there again?
What should we do? Panic?
When we woke this morning, it was light. The birds still came to the birdfeeders outside. So far, at least the world has not come to an end.
Nor will it.
We follow our disciplines so we stay with what has worked over decades and let the short term “fluctuations” that are unpredictable work themselves out. Just think for a moment. The only reasons unpredictable things happen is they ARE unpredictable. If they were predictable, they would not occur!
Those who sell in panic might look back and wonder, “What was I thinking?” They may ultimately get the worst returns.
Those who stay the course should be just fine.
Those who invest when others panic could do the best, maybe not over the next day or week, but as investors, they can be “picking the pockets” of those who panic.
The reason for the panic might always be different, but the pattern and the path it eventually takes is usually the same.
We have been through similar situations so many times before that we’re not about to panic. It would have been the worst thing to do most EVERY time before, and it may be again unless the world is truly coming to an end. And if it is, nothing we do will matter anyway.
Hope this helps.
This too will pass.
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