OK, so the market has went down for four straight days. It has went down quite a lot. Should you stop investing in the stock market?
My vote is no.
Here are my reasons:
1. Dollar cost averaging – this means you continue to invest at a set interval regardless of price. It is like the mutual fund is on sale at a lower price when it drops in value.
2. For well-chosen mutual funds – steady returns over the long-haul (20+ years) – you can look at historical evidence – it is actually verifiable!
3. World demand is growing – China, India, and Eastern Europe are all entering into the new world market stage. All of them want infrastructure such as roads, electricity, utilities in order to have the appliances and other items that help make life easier (dryers, washers, stoves, can openers, etc.). Invest in companies that are on the forefront in these developing markets, and it should result in a handsome return.
4. Just like the marathon I have been ranting about, you are in this for the long haul!
Have a great weekend!