It can be nerve-wracking to watch real-time market peaks and dips play out in your portfolio. With breathless headlines announcing current annual lows in the Dow Jones, Nasdaq and S&P 500, it’s easy to fall prey to short-term thinking.
There’s an understandable degree of nervousness that comes with watching the markets dip and seeing the price of assets in your portfolio go down virtually in real-time. But it’s critically important not to let an emotional reaction lead to poor decision-making. When you’re up close and personal to a couple of trees toppling over in the high winds of a market correction, it’s not always easy to remember that the overall health of the forest remains strong.