Emotions have a sneaky way of ruining some of the best investors. Usually, emotions like fear or greed are based on the short term and can result in poor financial decisions.
It’s important to keep some perspective. The modern stock market has been around since 1926. Throughout its history, it has certainly had its share of volatile moments: we’ve gone through wars; we’ve gone through economic depressions; and despite the bumps in the road, the stock market has recovered over the long term. And that’s key to remember.
When it comes to investing, there will be bumps in the short term. When this happens, it’s important to remember that our economy has shown itself to be resilient over long-term periods.
So if you’re a long-term investor, don’t let short-term noise get to you. Instead, take a look at history and remember you’re in it for the long haul.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.