How You Behave During Bad Times Will Determine How Much Money You’ll Have During Good Times

November 14, 2018 Add Comment

What do you do when the market drops? How you react is very important because that will determine how much retirement money you’ll have twenty, thirty, or forty years from now. Here are four things you need to do when your portfolio is as red as blood:

1. Focus on the Fact That You Have Cash for Emergencies
In my banner seminar, “How to Make Billions in the Stock Market,” I always remind people that before they
invest in the market, they should always have an emergency fund, which is about three to six times of their monthly
expenses.
I also tell people NOT to put any money in the stock market that they’ll be using in the next three to five years.
You need to have cash for your short-term goals.
If you have an emergency fund and cash for your short-term goals, you’ll react very differently when the stock
market dives. You won’t panic. You’ll take everything in stride. You’ll smile and relax.

2. Remind Yourself That the Market Will Go Up Again
Sometimes we have bull markets, and sometimes we have bear markets. Fact is, both don’t last.
In the United States, the average bear market lasted a little longer than a year, with an average loss of 34.7
percent, while the average bull market lasted more than four years, giving an average growth of 140 percent. Isn’t
that amazing? The odds are in your favor.

3. Sit Tight and Wait for the Market Rebound
You know the market will go up again. Question: Will you be riding it when the rebound takes place?
The other day, I got some sad news from a friend handling mutual funds. He said many of his customers are
selling at the bottom. So sad! These people have transformed their harmless “paper loss” into a real crushing,
heartbreaking financial loss.
That’s what happens when people don’t get educated.
And do you know what’s worse? Most of these people who leave never go back into the market, because
they’re been burned. And so they never participate in the bull run that happens right after the bears.
What should you do? Just hold on when the market hits bottom and wait for it to go up. Not only that, as
always, I need to remind you that you should…

4. Keep Investing Every Month!
Having cash to invest is your key to growing your money. To do that, you need to always set aside twenty
percent of your income for your investments. The formula for retiring a millionaire has been given to you. Execute!
Happy investing!