Yes, folks, do not doubt it. There WILL be another stock market crash. Something will happen. It’s guaranteed.
The only trouble is, we don’t know when (so don’t call us and ask). Nobody knows when.
So what do we do?
We sit on our hands, that’s what.
As Plan 100 clients know, we have a game plan that means we stay in the market, no matter what happens.
We don’t panic, because any crash will not be horrific.
To prove it, have a look at this graph.It shows that, since 1956, the UK market has been positive 75% of the time, with far greater rises than falls.
Markets will always go up and down.
Keep calm and carry on…
To explore lessons for the next financial crisis, we went to a conference for advisers recently, called ‘Humans under management’. It covered what makes people tick, and what makes them behave irrationally.
An advisor once said: “I don’t have people with investment problems. I have investments with people problems.”
It’s a natural instinct to want to rebalance your portfolio when unsettling news breaks. It can be hard to ignore the urge to act. But it’s not wise to be impulsive about your long-term investments.
Where Plan 100 scientific approach to investing adds value is because we help keep your emotions in check. Our key principles are design, diversification and discipline. Sticking to our game plan – no matter what happens – maximises the chance of success.
All you have to do is wait.
This links to our articles about Behavioural Finance:
If you still don’t feel relaxed after reading all that, we recommend yoga.
P.S. As a bit of retro fun, here’s something to watch while you wait for the next market correction.