What a wild day — and week! — it’s been for stocks.
The number of emails and calls I received spiked drastically as investors freaked out while they watched the top performing stocks of 2020 take the biggest hit.
The Nasdaq 100, which tracks the 100 largest companies in the larger Nasdaq index, moved into correction territory this morning before buyers stepped back in — in force, might I add. The pullback from the intraday high reached in February hit 11.5%. The average correction over the last few decades is 13.5%.
On today’s new episode of MoneyLine, I break down the two things you need to be doing right now as a long-term investor. The most important, of course, is not to panic. Do not let your emotions get the best of you and drive you to sell.
On days like these, it’s more important than ever to think long term. Corrections are part of investing, and they happen more often than you think.
Since 1920, corrections of at least 10% have occurred every 16 months. Five percent pullbacks have occurred three times per year. And bear markets — when stocks drop 20% or more — happen roughly once every seven years.
So if you’re in the stock market long term, you will experience multiple pullbacks and corrections — and even a couple bear markets. It’s okay to let the selling freak you out … a little bit. But it is not okay to panic sell. Trust me … making emotional decisions never ends well.
Whether you’re struggling to keep your emotions in check or not, make sure to tune into today’s podcast. It’s all about the charts. I share my screen with you and dive into the major indices plus specific stocks that are due for a bounce.
Don’t let the action keep you from sleeping this weekend. Rest easy, and join me now for this important episode of MoneyLine.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.