Markets are in freefall and spooking everyone. Amidst the gloom and doom, always remember the basic tenets of investing & finance. MANY people asked me what to do or what’s my view. It’s ALWAYS the same. The New Savvy has always advocated doing your own research & understanding your own temperament.
1. Reduce unnecessary expenses
2. Protect downside risk. Get insurance & make sure you’re well covered.
3. Research. Read. Study. Learn. As much as you can.
4. Know yourself. What are your investment objectives/ risk appetite/ time horizon?
5. Make sure you’re familiar with what you’re investing.
6. Be uncomfortable. Dip your toes in the market, no matter how small. Get as much experience.
7. Don’t time the market. You can’t get in the lowest or sell at the highest.
8. Remain invested. Don’t panic.
9. Don’t listen to “experts”. No one knows for sure what and how the market is going to be. Buy only if you’ve done your research and is fully comfortable with what you’re getting.
10. HOLD HOLD HOLD
Think long term. “Markets can stay irrational longer than you can stay solvent.”