Home > Investing > Don’t Fear Stock Market Downturns

About Kim Parr

Kim Parr is a private practice optometrist, freelance writer, and personal financial blogger. You can follow her journey to 20/20 financial vision at Eyes on the Dollar.

15 comments

  1. A stock market downturn is like a shoes sale, but for PF nerds! Whenever there’s something bad in the news about a certain company, I look at it like “time to buy!”

  2. great advice! It’s important to ignore the constant talk of stocks falling and keep your overall investment strategy.

  3. Like Gretchen said, I view times like this as a sale. As a long-term investor this can be a time of great opportunity or you can simply ignore it as it means little in the grand scheme. I spoke to way too many investors who sold everything in 2008 and end up sitting out the ride back up – the sad thing is the amount of return they lost out on as a result.

    • I know a few people who cashed out as well. Some of them used their retirement to buy a house or a car, figuring they would have to keep working forever anyway so why not splurge? I’m sure they don’t feel that way now.

  4. This whole stock market drop off has been an interesting time for me. I started investing in 2009, and everything has been going up up up since then. I really haven’t felt a real downturn until now, but I’m glad I keep up with blogs and read smart financial authors to know that this is no time to sell if you have a long term horizon. In fact, it is the WORST time to sell. So I’m just going to stand pat and be fully invested in the market as I always have been.

    It is entertaining to watch the news reports and see everyone breathlessly give their take.

    • News has almost gotten as bad as reality TV. Anything that gets attention is put in the spotlight. Unfortunately, negative attention is what gets the most publicity.

  5. This is the first correction/downturn I’ve experienced as an investor (I started saving in 2007 but didn’t get into the stock market until January 2009 – good timing!). I definitely don’t like the lower investment balance/net worth numbers Mint is showing me, but we are going to stay the course and keep dollar-cost averaging our way in! We’re not treating this period any differently than the bull market of the last many years.

  6. During the last downturn, we were in the middle of Alaska without any way to sell off our stocks/bonds. But because we are buy and hold investors in primary bonds and dividend paying stock, we wouldn’t have sold anyway. The dividends and interest just kept right on coming and any “loss” we incurred was simply on paper. Everything recovered and increased in value until this Monday. However, we will use the same strategy. We invest in the company, not the market.

  7. While there are certainly a lot of millennials that struggle with distrust of the stock market, I think the 50somethings and 60somethings are the ones who are going to struggle most when the market crashes. The pressure to “cash out” hits them the hardest because they are so close to retirement and they see a sizable amount of value wiped out in a short period of time. I think it’s important for those nearing retirement to realize they wont’ be cashing out everything all at once. Sure, they may lose a bit in the short-term but the stocks they will cash out 10 or 20 years down the road have a lot of time to rebound (and then some).

    • I can’t imagine how hard it would be to see 30% less of your retirement balance if you were ready to retire. Good point about not needing to cash out all at once, even when you do retire.

  8. We don’t have to fear stock market downturns but we have to pay attention to the consequences of such fallouts. For example, what happened Monday with China is extremely dangerous, we can’t help but paying attention to this kind of event.

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