Remember the following important thing:
No Bull market lasts forever but less than 20% of all corrections turn into a bear market.
You can’t predict the market’s short-term moves and/or avoid the occasional downdrafts.
Except some lucky calls, no one accurately and consistently times the market.
But nobody needs to. Despite short-term setbacks, stocks have always risen over the long haul.
The history of the market has always been higher highs and higher lows.
When a bear market does set in, it’s important to realize that just like bull markets they don’t last forever either.
By the time investors recognize that they’re in a bear market (defined as a decline of 20% from the high), the worst is generally already over.
Once a bear market ends, the following 12 months can see crucial market gains.
If your investment horizon is 5, 10 or even 20 years long, what difference does it make what the market does this year, this month or week?
Smart investors know volatility is the price they pay for earning much-higher-than-average returns and look for opportunities to take advantage of discounted prices.
If the market puts on a year-end rally, we may still see positive returns for a number of major indexes. But does this really matter?
Real investment success is measured in years, not in weeks or months, and is achieved by those who are able to maintain their strategies, their composure and their perspective.