People have been saying for some time that we’re due for a stock market correction (ie a 10% drop).
Actually ever since I started following it 2 years ago people have said the same thing, and it’s gone up massively since then. It’s lost about a third in less than 3 weeks; the biggest drop since 2008.
This is where it gets interesting, and pivotal on your journey. Many people can’t cope with seeing their portfolio drop in value. I can’t say it hasn’t been painful for me, and I don’t have a large pot I’ve been investing for decades!
If I hadn’t done the research I’ve been doing over the 2 years, I think I would have panicked and sold up last week, thereby losing around 20%. As it is it’s purely a paper loss.
It’s also an opportunity to invest, and get 1/3rd more for your money than you would have. This isn’t a simple calculation though. There’s no change on the horizon, and of anything the length of the disruption is increasing. History shows us that it will pass, and the market will go back up to where it was, and beyond. But of course nobody knows how long this will take.
As intelligent people will say, if you may need you money in the next 5 years, don’t put in on the stock market. It’s easy to ignore this advice when the markets have been going up for years.
One consolation is that savings rates are awful, and probably about to get lower. At least your shares are producing dividends.
Sit on your hands and ride it out. And stay safe!