It would seem like the rocket booster that propelled the equity markets, since mid-December 2017, has used up all of its solid fuel and has begun its violent descent. The Dow plunged 7% in two trading days. Bursa is in no better shape too.
I hope it did not come as a shocker to you.
While many are trying to comprehend what triggered the market sell-off, some are going a step further by predicting whether the sell-off could be a correction or a beginning of something sinister: a bear market. But have we not learnt that the idea of predicting the future is a fallacy.
Though we can’t predict the future, how we act now will certainly influence our future.
I can’t speak for all but if you have set aside money to be invested (not speculating) in the stock market, then you just have to sit tight and do absolutely nothing. Yes, I am suggesting that you act, what you may perceive to be irrational, but is in fact rational.
If that money is meant to be invested, that means you will have no use for it now, except to see it grow, over time. So if there is no use for that money, until sometime in the future, does it really matter what Mr Market values your stocks now? Ponder at this.