Well another few weeks have passed and things are looking up. Or are they?!
In the last couple of days it seems like the sky is falling and everything has gone to custard because of the Corona Virus. Our portfolio certainly reflects that as well. The main reason is that the spread of the Corona Virus has a lot of people scared, and when people get scared the market tends to reflect that.
I feel like this blog will really help people once they understand the money is made in a down turn. What do I mean by that? Think about it if a stock costs $10 yesterday and today it costs $5, you are able to buy the same stock at a ‘discount’.
Now I am very very sad about the virus and how many peoples lives it has affected, however a market downturn REALLY excites me. “Oh my gosh Milan are you crazy” – uneducated investor 2k20
Yes that’s right I am because every single downturn in the S&P 500 has been preceded by an upturn. That’s right every single one. In one of my previous posts I show you the S&P 500 lifetime value and you can see all the dips recover and then become gains.
“What should I do with my investments Milan” If you are a similar investor to what I am, detailed in this post then you should do NOTHING and if you can buy more. That’s right buy more, being the smart investor that you are, you are are buying at a discount. The biggest enemy to the investor is their mind in my opinion. Don’t think “oh no markets are down, time to sell” rather think “oh yes markets are down, time to buy”
If I can leave you with one thought it is to not do anything if you are an index investor right now in this down turn.
As always here is my current portfolio value and you can see the downturn is in full swing (but even with this, note that my portfolio is positive)
Helping people build a better future is a genuine passion of mine and I am super passionate to see where this blog goes!
Have a good week and happy investing. Peace