I spend very little time on social media, but got sucked into a vortex over the weekend. One thing that stuck out to me is the level of panic of people in their 20s about stocks going down with lots of panicky questions about whether it is time to sell.
For most people who post here, that seems ridiculous because we have lived through major drawdowns before, and the market going down 5-10% from a high - especially when it is still up on the year! - seems like a non-event. But I was realizing that there are tons of younger investors who have just not seen much downward action in the past, and then social media being what it is, there is just a lot of panic energy. It's an amazing and awesome thing that more and more young people are investors than 30 years ago. But stay the course, friends.
The stock market goes down 20% from here? Stay the course. Keep putting money in every month. You are buying at a lower price. It goes down 30%? Do the same thing. It's a long game, you and I have no idea where the market is headed, but over the long haul the answer is likely: up. If you panic, you will regret it - you will sell and miss one of those weeks when it goes up 5% and you are on the sidelines. You will miss chances to buy lower. Just stop watching and stay the course. (Oh and also - stop trying to buy individual stocks. Buy an index fund or ETF and chill. Don't try to pretend you know something about Nvidia).
For most people who post here, that seems ridiculous because we have lived through major drawdowns before, and the market going down 5-10% from a high - especially when it is still up on the year! - seems like a non-event. But I was realizing that there are tons of younger investors who have just not seen much downward action in the past, and then social media being what it is, there is just a lot of panic energy. It's an amazing and awesome thing that more and more young people are investors than 30 years ago. But stay the course, friends.
The stock market goes down 20% from here? Stay the course. Keep putting money in every month. You are buying at a lower price. It goes down 30%? Do the same thing. It's a long game, you and I have no idea where the market is headed, but over the long haul the answer is likely: up. If you panic, you will regret it - you will sell and miss one of those weeks when it goes up 5% and you are on the sidelines. You will miss chances to buy lower. Just stop watching and stay the course. (Oh and also - stop trying to buy individual stocks. Buy an index fund or ETF and chill. Don't try to pretend you know something about Nvidia).
Statistics: Posted by NashTransplant — Mon Aug 05, 2024 6:57 am — Replies 11 — Views 879
