If you've been around for a while, then you know that the 24 hour media cycle is always looking to tout the next big crises... And guess what?.. Bad news sells, so you can almost guarantee they will be touting doom and gloom. The sad thing is, most people fall for it. They run around sounding like Chicken Little's - "The Sky Is Falling". You've probably heard about the latest yawn, yes I'm calling it a yawn. Brexit, Britain's exit from the European Union.
Two weeks ago when the news broke you couldn't help but hear how this was going to affect the stock market. All speculation of course. Not even a week after the news of Brexit, the stock market recovered and once again the sky had not fallen. Here are a few things to keep in mind the next time you hear doom and gloom, and you will.
The first thing I want you to do is get focused. Throughout history there have been many downturns in the market. In recent history, the financial crises of 2008, September 11 2001, March 2000, the tech bubble - all come to mind. There have been many more in the last 16 years. With each crash, there is a recovery, and guess what? If you stay in the market and keep investing, your money grows with the recovery! Which never gets the same amount of press. Keep in mind that the long term track record of the stock market is trending upwards and that every 15 year period has made money!
Staying intentional simply means this. You're going to do money on purpose from now on.. Identify your dreams, set goals and have a plan to get there. Too many times I see people deviate from their goals when life happens or they hear the economy isn't doing well or their desire for toys and lifestyle outweigh their desire to push towards their dreams.
Stay The Course
When life hits you with an unexpected emergency, get back up and keep pushing towards your goals. According to money magazine 8 out 10 of us can expect a major negative financial event in any given 10 year period. What's the best way to stay the course?... Have a 3-6 month emergency fund to cover you during an unexpected event. Having an emergency fund is going to give the emotional and financial support you will need while dealing with crises.
The Big Picture
Rarely does the economic recovery get nearly as much media attention, but the economy does recover! The stock market is similar to a roller coaster. You are going to experience ups and downs. It's the way the market works. Don't let emotions like fear and scarcity drive your investment decisions. If you jump off a roller coaster early you will get hurt. Best thing you can do when you feel uncertain is to connect with your financial professional. They may need to take a closer look and make a few tweaks to your portfolio.