A few weeks ago during our current investment cycle we very briefly crossed over into bear market territory. This is simply defined as a drop of 20% from peak to trough. Granted this move was very brief and looking back on it now it was probably a nice long term entry point for some of the buy and hold investors.
You must continue to remember the famous saying, “Markets can remain irrational for a lot longer than you or I can remain rational.” This is so important to focus on as continued volatility often causes extreme short term movement in both directions.
Again, the hardest part of being a long term investor in the stock market is not letting your emotions fluctuate on a short term basis. This is easier said than done because we all experience emotions naturally by the fact that we are human.
Continue to stick with your game plan and try not to pay too much attention to the financial pundits and media that all have differing opinions. After all, when fear is elevated we often see very nice moves to the upside in stocks.
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