“The best time to buy stock is when blood is running in the streets.”
Nathan Mayer Rothschild (1776 – 1836)
I hope that you have enough courage to enjoy the market’s severe ups and downs!
But for most of you these are unsettling times, and you start sweating when you see your holdings decline by double-digit percentages!
But take courage, those movements may actually be good for you!
What should a careful investor do in a market downturn?
How can you avoid panic and make the best use of panic selling by others?
Dramatic dives in the stock market allow you to “Buy the Dips!” and the dips are so frequent these days, you don’t even need to know when they will occur!
With stock prices flying up and down, chances are that on your next payday prices will be down, so you’ll get more shares for your money.
You’ll be enjoying cost averaging!
The more volatile the market and the more extreme the price fluctuations, the better off you’ll be in the long run.
It may sound crazy at first, but it makes sense:
When prices swing wildly up and down, you will frequently have the opportunity to buy low.
As the stock market inches up over time, you’ll enjoy greater gains than those who plunked all their money into the market when it was high, or who invested in a market that was slowly rising rather than wildly fluctuating!
So when prices dip, open up the champagne …
You’ll be buying stocks on sale!