Guides / Protect yourself
When the market drops
Downturns are normal. Reacting in a panic can be costly.
Markets fall sometimes, occasionally a lot. For long-term investors, how you react can matter as much as what you own.
Things to remember
- Declines have been a normal part of investing historically
- Selling after a drop locks in the loss
- Regular contributions buy more shares when prices are lower
- Money you need soon shouldn't be in investments that can drop sharply
What to do instead
- Check that your emergency fund is in place
- Revisit your mix if you truly can't sleep, ideally when markets are calm
- Avoid checking your balance every day
General education only. Past performance doesn't guarantee future results. Nickel Gains isn't paid by any broker, fund company or adviser.