Mace? No, not that kind of bear attack silly. The kind that happens when the stock market is down. Spoilers, don’t panic. That may work for both kinds.
Are we in a bear market? Maybe, maybe not but we’re certainly not in a bull market. Ebola! ISIS! Midterm elections! All conspiring to hurt our gain.
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I know many of you are logging into Betterment and freaking, even if just a little and I’ll include myself in that. My first foray into investing and the number is negative. Feels bad. But we’re all in the same boat and don’t panic, it’s not the Lusitania. The ship will right itself. But not overnight.
This is why we preach buy and hold. Even if that number is down, it’s still better than having that money sitting in a savings account. And remember, investing is only one piece of your overall financial picture. You can’t single-handedly cure Ebola or defeat Isis. What you can do is focus on the other areas of your picture. Throw a little extra money at your debt, tighten up your spending leaks.
If you just have to do something, buy now! Remember, be greedy when others are fearful. If you are just overwhelmed by it all, ignore it. Tune it out, don’t watch the news, don’t read the financial page. Just turn a deaf ear and let it happen to you.
Reading only headlines is a terrible way to get your news.Tweet This
Still not convinced? Okay, if you act of out fear or irrational optimism, you are handing over your money to the investment banks. This is when those houses of ill repute make bank. Don’t give those greedy, undeserving bastards any more of your money! Similarly, selling has tax implications and the government shouldn’t be getting any more of your money either.
So the takeaway is, do anything constructive. Go for a run, read a book, refinance your student loan. But leave that investment account alone!
Also, courtesy of our friend Kyle:
If it’s a black bear-fight it! If it’s a brown bear(like a huge Grizzly)-lie down and hope it leaves you alone. A rhyme to remember in case you’re every about to get mauled-Black Fight Back, Brown Lie Down!”
Wikihow To Survive a Bear Attack: Should you ever find yourself in this situation, remember LMM prepared you.
Betterment: Leave it alone!
Featured Image Photo Credit: Darica Brown Bear by Nevit Dilmen