What to do when the stock market falls
Recently the stock market has been hit hard. It’s been up and down by hundreds of points a day. That can be a little scary.
When you first start out in investing it’s overwhelming to watch the value of your stocks fall when the stock market moves downwards. You want to sell your stocks before they lose even more money. Do not do this.
Stock markets go up and they go down. Having the temperament to hold your emotions in check while this happens will make you a successful investor.
Right now the market is up and down because of rising interest rates, trade war fears and election jitters in the US. These circumstances do have an impact on companies trying to make money. However, if they’re a good company with strong fundamentals then they should be able to withstand outside pressures.
If you look at the DJIA over a 20 year period it goes upwards, not downwards. There are blips, like the one we are experiencing now, where the market goes down but it’s always temporary. If you have the temperament to ride it out, you will be rewarded.