Whether the big sell-off of January 2016 is over or not, here's an article by Barry Ritholtz with advice to help you through the rest of this one, or the next one.
The do’s and don’ts of a market crash
Excerpt:
(Print out this column. Read it again when the next one comes along).
Do take notice at how cyclical markets are. Markets rise and they fall with shocking regularity. They may not stick to schedules as tightly as the solar system does — think seasons, sunrise and sunsets, moon phases, even the appearance of comets — but they do move in semi-regular cycles.
As do market corrections and crashes. Between 1950 and 2014, half of all annual periods saw a correction of 10 percent or worse. From the August highs to Friday, U.S. markets are down (surprise!) about 10 percent. Don’t be surprised if in two, four and six years from now, those markets also see a 10 to 20 percent correction.
Bull and bear markets come along on their own timelines, stay for as long as they like, then move on. There is not a whole lot you can do about it, except recognize that it happens.
Don’t react emotionally. Do not give in to your gut, which might cause a momentary lapse in judgment.
Full article here.
