Right now we are heading straight into a crisis caused by the Corona pandemic. What’s very likely going to follow regarding stocks is another bear cycle.
Over the past 100 years bear cycles on average lasted 11 months. During that time markets are going down and the overall mood is rather negative.
With the current crisis that hit us completely unprepared and struck us hard we also have a high level of uncertainty. People don’t know how to behave or what to do regarding their investments.
With all the uncertainty around them and all that negative talk they tend to get emotional and act irrational whereas now is the time when it’s more important than ever to stay rational, especially about your investment decisions.
The funny thing is that everyone understands on an intellectual level that investing during a bear cycle when the markets are going down makes sense. Yet their actual behavior seldom reflects that knowledge. Instead they let their emotions take over and often end up panic selling.
My advice for you today is this: Use the opportunity and take advantage of the current price falls.
Of course you don’t want to randomly pick any stocks that are going down but pick the winners. Contact me if you want to learn how.
In one of my lives on Facebook I further elaborated on this topic. So if you’d like some more details, you can watch it here (use Chrome browser):
Why the Coronavirus has a huge impact, but how we will win this battle in the stock market.
Posted by Lukas Xu on Saturday, 21 March 2020
If the video doesn’t show, you can watch it directly on Facebook here.