The S&P 500 dropped almost 5% this month! It’s extremely scary out there, but the worst thing you can do for your portfolio is panic sell.
Instead, try to look away and hold your positions as they are. Do not sell on the downswing because the probability is ZERO that you will buy at the lowest point. If you buy back higher, you’ve baked in a loss. Hold tight.
Big cash needs in the next 4 years (new cars, down payments, college) should already be in cash equivalents. If its not already in cash equivalents, give the market some time to stabilize and stop dropping. Wednesday’s tariff news was big, and the markets will take a minute to adjust.
Should you buy the dip? Sure, you can use cash THAT YOU DON’T NEED FOR THE NEXT 4-5 YEARS and buy a solid S&P 500 index fund or Total Market (US) index fund.
Winston Churchill: When you’re going through hell, keep going…
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All our best,
The Fearless Finance Team
